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QUESTIONS  OF  THE  DAY. 


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58  —  Politics  as  a  Duty  and  as  a  Career.     By  MOORFIELD  STOREY. 

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Industrial  Conciliation 

Report  of 
The  Proceedings  of  the  Conference 

Held  under  the  Auspices  of 

The  National  Civic  Federation 

At  the 

Rooms  of  the  Board  of  Trade  and  Transportation 
In  New  York 

December  16  and  17,  1901 


G.  P.  Putnam's  Sons 
New  York  and  London 
presa 
1902 


COPYRIGHT,  1902 

BY 
RALPH   M.  EASLEY 

Published  July,  1902 


Ubc  fmicfcerbocber  press,  flew 


PREFACE. 

THE  National  Conference  on  Industrial  Concilia- 
tion held  in  New  York,  December  16  and  17, 
1901,  followed  naturally  upon  two  preceding  con- 
ferences held  respectively  under  the  auspices  of  the 
Civic  Federation  of  Chicago,  and  its  outgrowth,  the 
National  Civic  Federation.  The  first  conference 
was  held  at  Chicago,  November  13  and  14,  1894, 
succeeding  the  strike  of  the  American  Railway 
Union,  usually  known  as  the  "Pullman  Strike." 
The  characteristic  features  of  that  conference  were 
academic  and  philanthropic.  Emphasis  was  laid 
upon  the  importance  of  arbitration  and  conciliation 
and  the  service  to  the  country  which  could  be  ex- 
pected from  the  adoption  of  peaceful  methods  in 
settling  labor  disputes.  The  proceedings  were  pub- 
lished in  a  pamphlet  of  ninety-six  pages. 

The  second  conference  was  held  in  Chicago,  De- 
cember 17  and  1 8,  1900,  under  the  auspices  of  the 
National  Civic  Federation.  This  conference  marked 
a  step  in  advance,  in  that  it  brought  clearly  to  the 
front  the  idea  of  conciliation  as  distinct  from  ar- 
bitration, and  the  plan  of  the  joint  agreement 
as  the  basis  of  conciliation.  /At  this  conference, 
also,  much  interest  was  taken  in  the  discussion  of 

iii 


IV  PREFACE. 

compulsory  arbitration,  and  the  conference  resulted 
in  practically  deciding  that,  for  the  United  States 
at  least,  the  proper  line  of  progress  should  be  in  the 
direction,  not  of  compulsory  arbitration,  but  of 
voluntary  conciliation.  The  proceedings  of  the 
conference  were  reported  at  length  in  the  daily 
papers,  but  were  not  published  in  a  separate  volume. 
The  more  important  papers  are  reproduced  in  Part  II. 
of  this  volume.  A  Committee  of  twelve  members, 
representing  labor,  capital,  and  the  general  public, 
was  appointed  at  the  conference.  This  Committee 
issued  an  "Appeal  to  the  American  People  "  recom- 
mending the  adoption  of  annual  or  semi-annual  joint 
agreements  and  the  creation  of  joint  boards  of  con- 
ciliation. This  appeal  will  be  found  in  Appendix  I. 
of  this  volume.  The  Committee  of  Twelve  met 
and  organized  in  January,  1901,  enlarged  its  mem- 
bership to  forty  and  called  a  meeting  to  be  held  at 
New  York  in  May.  Meanwhile  the  Committee  was 
able  to  avert  the  threatened  anthracite  coal  strike 
by  securing  a  conference  of  representatives  of  the 
operators  and  mine  workers.  At  the  meeting  in 
New  York,  two  public  sessions  were  held,  one  in  the 
rooms  of  the  Chamber  of  Commerce  and  one  in 
Cooper  Union.  At  that  time  the  Committee  issued 
a  statement  known  as  "The  Plan  and  Scope  "  (see 
Appendix  II.),  providing  for  an  educational  cam- 
paign and  practical  work,  and  for  the  appointment 
of  an  Executive  Committee. 

Pending  the  appointment  of  the  Executive  Com- 
mittee, a  sub-committee  was  called  into  active  par- 


PREFACE.  v 

ticipation  in  the  Albany  Street  Car  Strike,  the 
controversy  between  the  National  Metal  Trades 
Association  and  the  International  Association  of 
Machinists,  and  what  is  known  as  the  United  States 
Steel  Strike,  this  latter  practically  requiring  the  con- 
tinuous effort  of  the  sub-committee  from  the  1st  of 
July  until  the  I5th  of  September. 

It  was  the  success  of  the  Committee  in  this  work 
that  demonstrated  to  the  public  the  practical  char- 
acter of  the  organization,  and  enabled  it  to  command 
the  attention  and  support  of  the  representative  men 
who  accepted  appointment  upon  the  Executive 
Committee  at  the  Conference  in  December  follow- 
ing. 

The  conference  at  New  York  in  December,  1901, 
was  held  at  the  rooms  of  the  New  York  Board  of 
Trade  and  Transportation.  Those  who  took  part 
in  the  proceedings  were  leading  men  in  commerce, 
industry,  and  in  labor  organizations.  A  complete 
stenographic  report  of  their  discussions  is  given  in 
Part  I.  of  this  volume.  The  Industrial  Committee, 
appointed  after  the  adjournment  of  the  conference, 
was  organized  as  "the  Industrial  Department  of  the 
National  Civic  Federation  "  and  includes  the  follow- 
ing named  members  and  officers: 

OFFICERS  AND  EXECUTIVE  COMMITTEE 

MARCUS  A.   HANNA,  Chairman 
SAMUEL  GOMPERS,  ist  Vice-Chairman 
OSCAR  S.  STRAUS,  2d  Vice-Chairman 
CHARLES  A.   MOORE,   Treasurer 
RALPH  M.  EASLEY,  Secretary 


vi  PREFACE. 

ON  THE  PART  OF  THE  PUBLIC 

GROVER  CLEVELAND  (Ex-President  of  the  United  States),  Princeton, 

N.  J. 

CORNELIUS  N.  BLISS  (Ex-Secretary  of  the  Interior),  New  York  City. 
OSCAR  S.  STRAUS  (Member  of  the  Permanent  Court  of  Arbitration 

at  The  Hague),  New  York  City. 
CHARLES  FRANCIS  ADAMS  (former  President  of  the  Union  Pacific 

Railroad),  Boston. 
ARCHBISHOP  JOHN   IRELAND   (of    the    Roman   Catholic  Church), 

St.  Paul. 
BISHOP  HENRY  C.  POTTER  (of  the  Protestant  Episcopal  Church), 

New  York  City. 
CHARLES  W.   ELIOT  (President    Harvard  University),    Cambridge, 

Mass. 

FRANKLIN  MACVEAGH  (Merchant),  Chicago. 
JAMES  H.  ECKELS  (former  Comptroller  of  Currency  of  the  United 

States),  Chicago. 

JOHN  J.  McCooK  (Lawyer),  New  York  City. 
JOHN  G.  MILBURN  (Lawyer),  Buffalo. 
CHARLES  J.  BONAPARTE  (Lawyer),  Baltimore. 
RALPH  M.  EASLEY,  Ex-ofncio.  New  York  City. 

ON  THE  PART  OF  EMPLOYERS 

MARCUS  A.  HANNA  (Coal  Mines,  Iron,  Shipping,  and  Street  Rail- 
ways), Cleveland. 

CHARLES  M.  SCHWAB  (President  of  the  U.  S.  Steel  Corporation), 
New  York  City. 

S.  R.  CALLAWAY  (President  of  the  American  Locomotive  Works), 
New  York  City. 

CHARLES  A.  MOORE  (Manning,  Maxwell  &  Moore),  New  York  City. 

EDWARD  P.  RIPLEY  (President  Atchison,  Topeka  &  Santa  Fe  Rail- 
way System),  Chicago. 

J.  KRUTTSCHNITT  (Vice-President  Southern  Pacific  Railroad  Com- 
pany), San  Francisco. 

H.  H.  VREELAND  (President  of  the  National  Street  Railway  Asso- 
ciation), New  York  City. 


PREFACE.  vii 

LEWIS  NIXON  (Proprietor  Crescent  Shipyard),  New  York  City. 

MARCUS  M.  MARKS  (President  National  Association  of  Clothing 
Manufacturers),  New  York  City. 

JAMES  A.  CHAMBERS  (President  American  Window  Glass  Company), 
Pittsburg. 

WILLIAM  H.  PFAHLER  (former  President  National  Founders'  Asso- 
ciation), Philadelphia. 


ON  THE  PART  OF  WAGE-EARNERS 

SAMUEL  GOMPERS  (President  American  Federation  of  Labor), 
Washington. 

JOHN  MITCHELL  (President  of  the  United  Mine  Workers  of  America), 
Indianapolis. 

FRANK  P.  SARGENT  (Grand  Master,  Brotherhood  of  Locomotive 
Firemen),  Peoria,  111. 

THEODORE  J.  SHAFFER  (President  Amalgamated  Association  of 
Iron,  Steel,  and  Tin  Workers),  Pittsburg. 

JAMES  DUNCAN  (General  Secretary  Granite  Cutters'  National  Union), 
Boston. 

DANIEL  J.  KEEFE  (President  International  Longshoremen's  Asso- 
ciation), Detroit. 

JAMES  O'CONNELL  (President  International  Association  of  Machin- 
ists), Washington. 

MARTIN  Fox  (President  Iron  Moulders'  Union  of  North  America), 
Cincinnati. 

JAMES  M.  LYNCH  (President  International  Typographical  Union), 
Indianapolis. 

EDGAR  E.  CLARK  (Grand  Chief  Conductor,  Order  of  Railway  Con- 
ductors), Cedar  Rapids,  Iowa. 

HENRY  WHITE  (General  Secretary  United  Garment  Workers  of 
America),  New  York. 

W.  MACARTHUR  (Editor  Coast  Seamen's  Journal},  San  Francisco. 

Upon  its  organization,  the  Committee  adopted 
the  following  "Statement  of  Purpose  "  : 


viii  PREFACE. 

STATEMENT  OF  PURPOSE 

The  scope  and  province  of  this  Department  shall  be 
to  do  what  may  seem  best  to  promote  industrial  peace 
and  prosperity;  to  be  helpful  in  establishing  rightful  re- 
lations between  employers  and  workers;  by  its  good 
offices  to  endeavor  to  obviate  and  prevent  strikes  and 
lockouts,  to  aid  in  renewing  industrial  relations  where  a 
rupture  has  occurred. 

That  at  all  times  representatives  of  employers  and 
workers,  organized  or  unorganized,  should  confer  for 
the  adjustment  of  differences  or  disputes  before  an  acute 
stage  is  reached,  and  thus  avoid  or  minimize  the  number 
of  strikes  or  lockouts. 

That  mutual  agreements  as  to  conditions  under  which 
labor  shall  be  performed  should  be  encouraged,  and  that 
when  agreements  are  made,  the  terms  thereof  should  be 
faithfully  adhered  to,  both  in  letter  and  spirit,  by  both 
parties. 

This  Department,  either  as  a  whole  or  sub-committee 
by  it  appointed,  shall,  when  requested  by  both  parties 
to  a  dispute,  act  as  a  forum  to  adjust  and  decide  upon 
questions  at  issue  between  workers  and  their  employers, 
provided  in  its  opinion  the  subject  is  one  of  sufficient 
importance. 

This  Department  will  not  consider  abstract  industrial 
problems. 

This  Department  assumes  no  powers  of  arbitration 
unless  such  powers  be  conferred  by  both  parties  to  a 
dispute. 

The  Committee  also  adopted  by-laws,  of  which 
the  following  articles  bear  upon  the  organization 


PREFACE.  Jx 

and  the  methods  to  be  employed  in  case  of  labor 
disputes : 

ARTICLE  VII 

CONCILIATION   COMMITTEE 

The  Chairman  shall  appoint  a  Committee  on  Concilia- 
tion to  consist  of  nine  members,  three  of  whom  shall  be 
selected  from  each  group,  whose  duty  it  shall  be,  upon 
notice  from  the  Chairman  of  threatened  strike  or  lockout 
of  more  than  local  magnitude,  to  use  its  good  offices  in 
restoring  harmonious  relations,  reporting  its  action  to  the 
Executive  Committee. 

ARTICLE  VIII 

ARBITRATION 

Should  the  efforts  of  the  Conciliation  Committee  prove 
ineffective,  and  should  both  parties  to  the  dispute  desire 
the  services  of  the  Executive  Committee  of  this  Depart- 
ment, they  may  be  invited  to  select  two  employers  and 
two  wage-earners  from  said  Executive  Committee,  to 
serve  as  an  Arbitration  Board.  Should  the  four  find  it 
necessary  to  appoint  an  umpire  to  finally  decide  the  dis- 
pute, they  may  select  a  fifth  member  from  the  group 
representing  the  public.  Nothing  in  this  Article  shall 
be  construed  to  prevent  the  Conciliation  Committee  from 
securing,  when  desirable,  arbitrators  outside  of  the  Ex- 
ecutive Committee. 

ARTICLE  IX 

EMERGENCIES 

Should  a  controversy  seem  of  such  magnitude  as  to 
justify  such  action,  the  officers  shall  be  authorized  to 


PREFACE. 


call  a  meeting  of  the  entire  Executive  Committee  to  con- 
sider the  situation,  and  take  such  action  as  may,  in  their 
judgment,  be  required. 

ARTICLE  X 

AUXILIARY   COMMITTEES 

The  Executive  Committee  may  appoint  Auxiliary 
Committees  to  deal  with  local  disturbances,  the  rules 
governing  the  same  to  be  in  harmony  with  the  general 
purpose  of  the  Industrial  Department. 

NATIONAL  Civic  FEDERATION, 
New  York,  April,  1902. 


CONTENTS. 

PART  I. 

PACK 

REPORT  OF  THE  NEW  YORK  CONFERENCE,  DECEMBER  16-17, 
1901 i 

Opening  Address,  Hon.  Oscar  S.  Straus   ....        3 

Address,  Bishop  Henry  C.  Potter,  of  the  Protestant  Epis- 
copal Church  .  .......  8 

Address,  Senator  M.  A.  Hanna II 

Address,  Archbishop  John  Ireland,  of  the  Roman  Catholic 

Church .  .14 

Address,  Wm.  H.  Pfahler,  Former  President  of  the  Na- 
tional Founders'  Association  ...  .  .19 

Address,  John  Phillips,  Secretary  of  the  National  Hatters' 

Union .24 

Address,  John  J.  Donnelly,  President  New  York  Brick- 
layers' Association 27 

Address,  Jas.  Ryan,  Vice-President  New  York  State  Fed- 
eration of  Labor -29 

Address,  Charles  M.  Schwab,  President  United  States 

Steel  Corporation 32 

Address,  Jas.  B.  Reynolds,  Head  Worker  University 

Settlement,  New  York 35 

Address,  Marcus  M.  Marks,  President  National  Associa- 
tion of  Clothing  Manufacturers  ....  37 

Address,  E.  Dana  Durand,  Secretary  United  States  Indus- 
trial Commission 4° 

Address,  Frank  P.  Sargent,  Grand  Master  Brotherhood 

of  Locomotive  Firemen 4$ 

Address,  Lewis  Nixon,  Proprietor  Crescent  Shipyard,  New 

York  59 


xii  CONTENTS. 

PAGE 

Address,  Horace  M.  Eaton,  General  Secretary  Boot  and 

Shoe  Workers'  Union  ......  63 

Address,  Samuel  Gompers,  President  American  Federa- 
tion of  Labor  ........  67 

Address,  Ben  Tillett,  Fraternal  Delegate  to  American 

Federation  of  Labor  from  Great  Britain  ...  73 

Address,  John  Mitchell,  President  United  Mine  Workers 

of  America  ........  78 

Address,  Jas.  Duncan,  First  Vice- President  American  Fed- 
eration of  Labor  80 


PART  II. 

PAPERS  READ  AT  THE  CHICAGO  CONFERENCE,  DECEMBER  17- 

18,  1900 89 

Opening  Address,  Franklin  MacVeagh      ....       91 
Trade  Boards   of   Conciliation   and  Arbitration  Abroad, 
Carroll  D.  Wright,   United  States  Commissioner  of 

Labor 99 

"*  Trade  Conciliation  and  Arbitration  in  the  United  States, 
E.  Dana  Durand,  Secretary  United  States  Industrial 
Commission        ........     141 

— --   Conferences  of  Iron  Moulders'  and  Founders'  Associations, 
Martin  Fox,  President  Iron  Moulders'  Union  of  North 
America     .........     155 

^^   Conferences  of  the  Iron  Moulders'  Union  and  National 
Founders'   Association,    H.    W.    Hoyt,    ex-President 
National  Founders'  Association          .         .          .         .168 

-""•"   Conciliation,  not  Arbitration,  Chauncey  H.  Castle,  Presi- 
dent Stove  Founders'  National  Defence  Association     .     176 
Conferences  of  the  Longshoremen  and  Dock  Managers, 
Daniel  J.  Keefe,  President  International  Longshore- 
men's Association       .......      188 

Organized  Employers,  Frederick  P.  Bagley,  Master  Build- 
ers' Association  of  Chicago          .....     192 

The  Organization  of  the  Employer  Class  as  a  Prerequisite 
of  Conciliation  and  Arbitration,  Herman  Justi,  Com- 
missioner of  the  Illinois  Coal  Operators'  Association  .  204 


CONTENTS.  xiii 

PAGB 

Arbitration  and  Political  Action,  Frank  Buchanan,  Presi- 
dent Bridge  and  Structural  Iron  Workers'  Union  of 
Chicago 213 

Conferences  and  Agreements  of  Railway  Conductors,  E. 
E.  Clark,  Grand  Chief  Conductor  Order  of  Railway 
Conductors  of  America 217 

Indiana  Labor  Law,  Hon.  R.  S.  Taylor  ....     223 

The  Massachusetts  State  Board  of  Mediation  and  Arbitra-    « 
tion,  W.  O.  Reed,  President  of  the  Board          .         .     227 

The  Innocent  Public  —  Its  case  Presented  by  a  Farmer, 
John  M.  Stahl,  Secretary  Farmers'  National  Associa- 
tion  238 

The  Legal  Phase  of  the  Arbitration  Question,  Morris  M. 

Cohn,  President  Board  of  Trade,  Little  Rock,  Ark.     244 

The  Attitude  of  Labor  Unions  toward  Machinery  and 
Restriction  of  Output,  Henry  White,  Secretary  United 
Garment  Workers  of  America 254 


APPENDIXES. 

APPENDIX  I. — Appeal  to  the  American  People,  Chicago  Con- 
ference . 269 

APPENDIX  II.— Address  of  the  National  Committee  on  Con- 
ciliation and  Arbitration,  May  8,  1901  .  .  .  .271 


PART  I. 

REPORT  OF  THE    NEW  YORK  CONFERENCE, 
DECEMBER  16-17, 


OF  THE 

UNIVERSITY 

OF 


NATIONAL    CONFERENCE    ON    IN- 
DUSTRIAL CONCILIATION. 

MEETING  OF  THE  NATIONAL  CIVIC  FED- 
ERATION AT  NEW  YORK  CITY,  DECEM- 
BER 16-17,  1901. 

HON.  OSCAR  S.  STRAUS,  presiding,  opened  the  meeting 
with  the  following  address: 

FELLOW  LABORERS: 

In  the  name  of  the  National  Civic  Federation,  I  greet 
you  all. 

You  remember  the  story  in  David  Harum — how, 
when  the  millionaires  entertained  him  at  Newport,  he 
said  "low  bridge,"  and  instantly  all  present  ducked 
their  heads  in  recognition  of  their  origin.  This  is  pre- 
eminently true  in  our  country,  and  it  is  our  pride  and 
our  strength.  So  long  as  this  continues  true  the  chasm 
between  labor  and  capital  can  neither  be  very  wide  nor 
very  deep. 

I  do  not  know  why  I  was  selected  for  this  honorable 
privilege  of  presiding  over  this  conference, — in  many 
respects  one  of  the  most  notable  that  has  ever  convened, 
— except  that  it  was  my  good  fortune  to  compose  the  dif- 
ferences of  laborers  in  other  fields,  in  the  spiritual  field, 
between  our  missionaries  on  the  banks  of  the  Bosporus 
and  his  Imperial  Majesty,  the  Sultan  of  Turkey. 

3 


4  INDUSTRIAL   CONCILIATION. 

It  has  been  said  that  one  half  of  the  misery  of  the 
world  results  from  ignorance,  and  the  remainder  results 
from  passion.  I  am  sure  a  large  share  of  the  trouble 
between  capital  and  labor  is  traceable  to  these  two 
disturbing  factors.  Conferences  such  as  these,  called 
together  for  purposes  of  deliberation  and  conciliation, 
are  the  best  means  for  coming  to  a  working  under- 
standing. 

It  is  not  for  me  to  do  more  than  indicate  an  opinion  as 
to  what  form  that  understanding  should  ultimately  take. 
I  have  faith  in  the  conference  of  the  intelligent  leaders 
of  both  sides.  Organization  is  concentration  and  paves 
the  way  to  arriving  at  a  better,  more  definite,  more 
speedy,  and  more  permanent  understanding  of  recipro- 
cal rights,  leading  to  reciprocal  concessions.  President 
McKinley  in  his  last  address  to  his  fellow-citizens  gave 
wise  advice  the  spirit  of  which  applies  to  this  situation : 
"Commercial  wars  are  unprofitable.  A  policy  of  good 
will  and  friendly  trade  relations  will  prevent  reprisals. 
Reciprocity  treaties  are  in  harmony  with  the  spirit  of 
the  times.  Measures  of  retaliation  are  not."  I  believe 
in  mutual  agreement  as  the  first  and  most  reliable 
method,  followed,  when  necessary,  by  arbitration  as  a 
second  stage.  I  doubt  the  wisdom  or  practicability  of 
the  passage  of  laws  for  compulsory  arbitration. 

Industrial  peace  to  be  permanent  must  not  rest  upon 
fear  or  force,  but  upon  good  will  and  equal  rights,  and, 
if  you  please,  upon  equal  power. 

You,  gentlemen,  are  the  representatives  of  the  brains 
and  sinews  of  the  industrial  forces  and  energies  of  the 
country — organized  capital  and  organized  labor.  From 
these  two  bodies,  acting  in  accord  and  harmony,  with  just 
regard  for  the  rights,  duties,  and  privileges  of  each, 


INDUSTRIAL   CONCILIATION.  5 

emanate  the  material  welfare,  happiness,  and  prosperity 
of  the  eighty  million  people  of  these  United  States. 

In  no  country  are  conditions  by  law  and  by  nature 
better  adapted  to  the  equitable  adjustment  of  the  re- 
ciprocal rights,  duties,  and  privileges  of  labor  and  capi- 
tal than  in  our  own  —  and  why  ?  Because  we  are  a 
democratic  republic,  with  no  class  privileges  nor  class 
distinctions  to  separate  us — and  because  the  laborer  of 
yesterday  is  the  capitalist  of  to-day,  and  because,  too, 
the  capitalist  of  to-day  may  be  the  laborer  of  to-morrow. 
Men  like  Leland  Stanford,  Carnegie,  and  Rockefeller 
were  all  architects  of  their  own  millions,  who,  in  recogni- 
tion of  their  struggles  from,  and  their  love  for,  the  labor- 
ing classes,  dedicate  their  surplus  millions  to  enlarge  the 
avenues  of  access  to  the  highways  of  success.  In  one 
single  day  during  the  past  week  two  of  these  successful 
laborers  gave  forty  million  dollars  to  keep  those  high- 
ways open  long  after  we  shall  have  passed  from  the 
scenes  of  their  successful  struggles. 

That  the  wage-earners  form  the  primary  schools  for 
the  millionaires  is  evidenced  every  day;  that  they  are 
more  prosperous  every  year  is  evidenced  on  all  sides; 
look  at  the  deposits  in  our  savings-banks,  which  aggre- 
gate in  round  numbers  two  thousand,  five  hundred 
million  dollars,  an  average  of  more  than  four  hundred 
dollars  for  each  of  its  six  million  depositors.  No  other 
country  can  make  a  showing  comparable  with  this. 
And  in  no  other  country  do  wage-earners  through  well 
directed  energy  in  larger  numbers  become  capitalists, 
and  capitalists  through  misdirected  energy  more  readily 
become  wage-earners,  than  in  our  own;  there  are  here 
less  obstructions  on  the  up-grade  as  well  as  on  the 
down-grade. 


6  INDUSTRIAL   CONCILIATION. 

Our  country  is  characterized  by  certain  classes  in 
Europe  in  tones  of  contempt — but  really  out  of  envy  for 
our  prosperity  and  in  fear  of  our  aggressive  competition — 
as  the  most  commercial  country  of  this  commercial  age. 
So  be  it,  we  accept  the  designation.  We  glory  in  it, 
because  we  recognize  that  the  much  decried  spirit  of 
commercialism  contains  more  of  the  spirit  of  fair  play, 
fair  exchange,  and  of  humanity  and  all  that  constitutes  a 
great  and  prosperous  nation,  than  that  system  whose 
energies  are  concentrated  to  convert  men  into  slaughter- 
ing machines,  and  to  offer  them  up  as  food  for  shot  and 
shell,  that  system  of  militarism  which  makes  of  Europe 
an  armed  camp,  which  glorifies  the  state  at  the  expense 
of  the  individual. 

That  we  can  wage  war  when  necessity  demands,  our 
entire  history  is  a  proof;  but,  thank  God,  we  have  not 
made  and  will  not  make  our  country  an  armed  camp, 
but  a  country  where  the  humane  arts,  where  the  field 
and  the  forge  and  the  counting-room  combine  for  peace 
and  plenty. 

You  great  captains  of  industries,  you  the  great  leaders 
of  organized  labor,  have  come  here  in  a  spirit  of  con- 
ciliation and  deliberation.  May  that  spirit  characterize 
your  entire  proceedings,  and  may  our  meeting  tend  to  a 
better  understanding  between  the  constituents  of  these 
powerful  interests  so  dependent  upon  each  other,  known 
as  capital  and  labor,  but  which  in  fact  are  but  members 
of  the  same  household,  wherein  the  welfare  of  each  rests 
upon  mutual  concessions  to  the  rights  and  privileges  of 
the  other.  In  the  harmonious  union  of  these  two  forces 
lies  the  basis  for  true  expansion,  to  conquer  the  markets 
of  the  world  for  those  products  of  American  farms  and 
factories  in  which  we  excel  as  a  producing  nation. 


INDUSTRIAL   CONCILIATION.  J 

I  will  conclude  these  introductory  remarks  with  the 
sentiment  so  fitting  for  this  occasion  contained  in  Presi- 
dent Roosevelt's  message  to  Congress:  "When  all  is  said 
and  done  the  rule  of  brotherhood  remains  as  the  indis- 
pensable prerequisite  to  success  in  the  kind  of  national 
life  for  which  we  strive." 

We  have  here  a  number  of  prominent  gentlemen  whose 
services  are  identified  with  the  cause  for  which  we  are 
gathered  together.  I  regret  that  at  this  morning's  meet- 
ing some  of  the  leading  representatives  of  labor  have  not 
as  yet  arrived,  but  they  will  arrive  later.  I  shall  take 
pleasure  in  calling  upon  a  gentleman  to  address  you  who 
requires  no  introduction.  He  has  not  only  been  a 
spiritual  leader  for  great  numbers  throughout  these 
United  States  but  he  has  been  in  actual  touch  with  the 
problems  which  we  have  here  before  us.  It  was  he  who 
was  mainly  instrumental  in  organizing  the  Board  of 
Mediation  and  Conciliation.  I  call  upon  the  Right 
Reverend  Bishop  Potter.  (Applause.) 

BISHOP  POTTER:  There  is  a  slight  inaccuracy  on  the 
part  of  the  Chairman  in  his  statement  in  regard  to  the  ori- 
gin of  the  Board  of  Mediation  and  Conciliation.  The  re- 
sponsibility, or  privilege,  of  having  taken  the  initiative  in 
that  belongs  to  the  present  Mayor-elect  of  this  city  and 
Dr.  Felix  Adler  and  two  or  three  others  as  well  as  myself. 

I  should  like,  if  I  might,  first  of  all,  to  offer  a  resolu- 
tion that  the  Secretary,  when  he  is  appointed,  be  in- 
structed to  send  a  telegram  to  the  gentlemen  of  whom 
we  have  learned  through  you  that  they  are  unavoidably 
detained  from  this  meeting,  to  express  to  them  our  regret 
at  their  absence  and  to  assure  them  that  the  meeting 
will  be  held  together  until  their  arrival. 


8  INDUSTRIAL  CONCILIATION. 

Motion  seconded  and  adopted. 

BISHOP  POTTER:  I  move  that  Mr.  Easley  be  appointed 
Secretary. 

Motion  seconded  and  adopted. 

BISHOP  POTTER:  I  wish  to  congratulate  the  gathering 
within  this  room  upon  two  things.  First  of  all  upon  its 
informality,  which  I  venture  to  say  is  a  very  important 
element  in  it.  I  think  I  express  the  mind  of  a  great 
many  people  when  I  say  that  nothing  has  happened  in 
the  history  of  the  great  social  problem  with  which  we 
are  concerned  so  important  as  the  initiative  which  has 
been  taken  here  to-day.  The  bringing  together  of  the 
great  forces  of  industrial  activity  in  some  comity  of  in- 
tercourse and  conference  is  in  my  judgment  the  largest 
step  in  the  direction  of  the  solution  of  problems  with 
which  the  whole  country  is  concerned  that  has  as  yet 
been  taken,  and  this  assemblage  is  to  be  congratulated 
on  the  fact  that  the  gentleman  who  is  called  to  preside 
over  it  has,  as  he  has  reminded  us,  been  already  success- 
ful in  harmonizing  differences  between  men.  Certainly 
anybody  who  can  harmonize  differences  in  which  the 
Sultan  of  Turkey  is  concerned  may  be  considered  as 
having  eminent  gifts  for  such  a  task  as  ours. 

For,  what  we  want  is,  first,  intelligent  consideration  of 
these  complex  questions,  of  the  very  highest  order. 
While  I  was  sitting  and  listening  to  you,  sir,  I  was 
reminded  very  much  of  what  my  brother  Bishop  of  Ten- 
nessee told  me  the  other  day  of.  a  colored  meeting  in  his 
diocese  where  a  colored  brother,  with  a  very  loud  voice, 
but  with  very  feeble  mental  endowment,  was  pounding 
the  pulpit  and  crying  out,  "O  Lord,  give  us  power, 
give  us  power."  At  length  an  old  black  man  who  sat 
behind  him  called  out  in  a  sub-tone  which  was  audible 


INDUSTRIAL   CONCILIATION.  Q 

to  the  whole  audience,  "Brother,  it  is  not  more  power 
that  you  want,  but  more  idees  !  " 

Gentlemen,  that  is  what  we  want.  We  have  had  a 
great  deal  of  rhetoric  on  both  sides;  but  I  confess  I 
have  been  lately  encouraged  in  the  belief  that  the  ques- 
tions that  are  to  be  considered  in  such  a  conference  as 
this  will  be  dealt  with  thoughtfully,  from  evidences  that 
we  have  had  during  the  last  year  or  two  of  the  clear  and 
honest  thinking  that  has  been  elicited  on  both  sides  in 
the  bodies  to  be  represented  in  this  room. 

For  it  is  not  more  power  that  we  want,  whether  we 
are  working  men  or  capitalists.  Mere  power  is  a  very 
dangerous  thing,  but  power  regulated  by  ideas  is  of  equal 
value  whether  it  is  power  in  the  organization  of  labor 
or  in  the  organization  of  capital.  And  the  growth  of  a 
habit  of  intelligent  scrutiny  of  the  industrial  problems 
to-day  is,  to  my  mind,  the  most  interesting  and  most 
promising  note  with  reference  to  the  future.  In  that  re- 
spect I  venture  to  say  that  I  hope  the  expectations 
which  are  kindled  in  the  minds  of  the  public  in  regard 
to  such  gatherings  as  this  will  be  agreeably  met.  We  are 
constrained,  I  think,  to  recognize  the  falsity  of  certain 
superficial  remedies  for  labor  troubles,  and  the  need,  in 
dealing  with  them,  of  a  wise  discretion. 

But  the  best  thing  in  the  present  situation  is  the 
animus  behind  it.  In  that  regard  there  has  been  great 
progress.  The  attitude  of  men  in  the  organized  forces 
either  of  labor  or  capital  is  to-day  a  more  hopeful  one 
than  we  have  ever  known.  And  if  we  can  furnish  the 
third  quantity  in  the  whole  problem,  I  believe  you  will 
go  a  long  way  toward  success. 

Last  evening  I  was  dining  with  an  eminent  artist,  and 
we  were  talking  about  his  department  of  art,  and  the 


IO  INDUSTRIAL   CONCILIATION. 

work  of  Mr.  Burne-Jones.  Both  of  these  men  are  con- 
cerned in  kinds  of  work,  whether  in  glass  or  marble  or 
plaster  or  other  materials,  which  involve  contact  with 
the  workmen.  This  gentleman  told  me  that  Burne-Jones 
had  complained  to  him  that  he  greatly  regretted  the  pas- 
sage of  those  earlier  days  in  his  profession  when,  after  he 
had  made  a  drawing,  he  could  follow  that  drawing  into  the 
workshop  alongside  the  man  who  turned  it  into  stone,  or 
marble,  or  wood,  or  whatever  it  was.  Art,  he  said,  when- 
ever the  artist  and  the  workmen  were  not  in  close  touch, 
was  in  danger  of  becoming  commercialized.  There  is  a 
very  great  truth  there.  That  is  the  danger  with  all 
modern  work, — that  it  will  become  merely  commercial- 
ized the  moment  you  take  the  human  element  and 
human  contacts  out  of  it.  And  I  hope  one  of  the  highest 
aims  of  this  organization  will  be  to  get  back  those  con- 
tacts into  the  relations  of  capital  and  labor  and  to  do  that 
by  restoring  the  points  of  contact.  The  misery  of  modern 
industrial  life  I  maintain  is  in  its  isolations.  The  mo- 
ment you  get  a  great  body  of  men  who  know  nothing 
about  each  other  you  have  got  the  germ  of  innumerable 
evils.  And  the  greatest  service  an  organization  like  this 
can  render  is  to  re-establish  contact  with  others  of  men 
who  are  in  the  habit  of  thinking  or  working  by  them- 
selves. A  labor  organization  gets  its  members  into  a 
room  and  they  are  harangued  by  nobody  but  men 
who  look  at  their  side  of  the  problem.  The  capitalists 
on  the  other  hand  do  the  same  thing.  And  so  if  I 
were  asked  to  design  a  seal  for  this  society  it  should 
be  the  representation  of  the  fable  of  the  Knights  of 
the  Gold  and  the  Silver  Shields,  each  of  them  charg- 
ing one  another  with  being  a  liar,  because  neither  of 
them  can  see  both  sides  of  the  shield.  Then  I  should 


INDUSTRIAL   CONCILIATION.  \\ 

make  the  motto  for  that  shield,  "Put  yourself  in  his 
place."     (Applause.) 

MR.  STRAUS:  This  morning  in  taking  up  the  paper  I 
read  the  following: 

"  I  would  rather  have  the  credit  of  making  successful  the  move- 
ment to  bring  labor  and  capital  into  closer  relations  of  confidence 
and  reliance  than  be  President  of  the  United  States.  If  by  resign- 
ing my  seat  in  the  United  States  Senate  I  could  bring  to  fruition  the 
plans  that  we  are  now  fostering  to  make  strikes,  lockouts,  and  great 
labor  disputes  impossible,  I  would  gladly  do  so.  I  think  it  is  the 
grandest  thing  that  could  be  accomplished  in  this  country.  I  would 
want  no  greater  monument  than  to  have  the  world  remember  that  I 
did  something  to  end  wars  between  American  labor  and  American 
capital." 

These  are  the  sentiments  expressed  by  Senator  Hanna. 
(Applause.)  I  have  the  great  pleasure,  not  of  introduc- 
ing to  you,  because  you  all  know  him,  but  of  asking 
Senator  Hanna  to  give  expression  to  his  thoughts  upon 
this  occasion. 

SENATOR  HANNA:  Gentlemen,  those  are  my  senti- 
ments. They  came  from  the  heart,  and  they  came  after 
a  long  experience  in  the  industrial  world  and  almost 
daily  contact  with  labor  since  I  have  been  a  man  of 
business. 

In  my  business  connection  it  so  happens  that  I  have 
been  engaged  in  that  class  which  has  necessitated  the 
employment  of  a  large  number  of  laborers.  In  1874  it 
happened  for  the  first  time  that  I  had  direct  dealing  with 
a  distinct  labor  organization.  That  was  the  year  that 
the  National  Bituminous  Coal  Miners'  Association  of  the 
United  States  was  formed.  I  remember  the  incident 
when  the  president  of  that  organization  and  its  secre- 
tary called  upon  me  in  my  office.  It  was  a  year  which 


12  INDUSTRIAL   CONCILIATION. 

followed  a  long  and  disastrous  strike  in  a  section  of  the 
coal  mining  districts  of  Ohio.  They  came  to  me  with  a 
proposition  representing  their  organization  that  some- 
thing ought  to  be  and  might  be  accomplished  to  do  away 
with  the  disastrous  strike,  and  by  way  of  argument  they 
read  to  me  their  constitution  and  by-laws.  I  said  to 
them,  "Gentlemen,  if  you  mean  what  you  have  said  in 
those  articles,  I  am  with  you.  If  it  is  your  purpose  and 
determination  to  lay  the  foundation  for  a  better  under- 
standing between  capital  and  labor  I  will  give  you  my 
hearty  co-operation."  And  having  become  convinced 
that  there  was  sincerity  in  their  purpose  I  immediately 
took  up  the  operators'  side  of  the  question  and  in  a  short 
time  we  had  an  operators'  organization  and  a  committee 
appointed  from  each,  to  whom  was  to  be  referred  all  dif- 
ferences and  difficulties  to  be  settled  by  arbitration. 
During  the  life  of  that  labor  organization  all  troubles 
and  differences  were  settled  by  arbitration.  That  in- 
cident made  me  an  advocate  in  favor  of  organized  labor. 
(Applause.) 

And  from  that  day  until  to-day  I  have  been  a  believer 
that  at  some  time  that  sentiment  might  dominate  and  the 
results  from  it  would  be  what  I  have  always  dreamed  of 
and  hoped  for.  From  that  day  until  to-day  I  have  never 
ceased  in  my  individual  capacity  to  work  to  secure  those 
results.  During  those  years  I  have  seen  and  been  in 
contact  with  many  differences  between  capital  and  labor. 
I  have  studied  the  proposition  from  every  standpoint, 
never  abandoning  the  hope,  as  I  saw  from  appearances 
on  both  sides  a  near  approach  to  a  better  understanding. 
Therefore  I  say  I  never  have  abandoned  the  hope  that 
that  day  might  come.  And  in  this  presence,  and  in  the 
interest  which  I  see  manifested  by  those  here  to-day,  I 


INDUSTRIAL   CONCILIATION.  13 

believe  the  day  is  near  at  hand.  To  say  that  I  am  in- 
terested in  it  is  to  put  it  very  mildly,  and  although  I  did 
not  intend  that  that  sentiment  should  have  the  publicity 
which  your  President  has  given  it, — and  perhaps  it  may 
seem  a  little  egotistical  to  have  mentioned  it  in  that  con- 
nection,—I  reaffirm  the  sentiment  by  the  statement  that 
I  stand  ready  and  willing  and  anxious  to  give  the  best 
that  is  in  me  while  life  remains  to  accomplish  this  pur- 
pose. (Applause.) 

I  sincerely  believe  that  the  opportunity  is  now  ripe, 
and  from  such  expressions  as  we  have  heard  from  Bishop 
Potter  and  from  others,  I  am  encouraged  to  believe  that 
that  third  element  is  coming  into  power,  making  manifest 
an  interest  outside  of  those  two  forces  which  have  been 
engaged  together  in  this  country,  that  will  solve  all  prob- 
lems, surmount  all  difficulties,  and  bring  the  two  opposite 
forces  together. 

This  is  not  the  time  nor  place  perhaps  to  discuss  par- 
ticulars. I  simply  want  to  improve  the  opportunity  to 
give  expression  to  that  thought,  that  it  is  my  all-absorb- 
ing interest  and  firm  determination  as  a  worker  in  the 
field,  to  join  with  all  those,  the  laborer  and  the  employer, 
to  bring  about  a  condition  of  things  which  will  accom- 
plish more  in  the  direction  of  good  government,  good 
social  relations,  and  good  morals  than  any  one  subject 
which  the  public  mind  can  take  hold  of.  (Applause.) 

The  faith  in  me  of  this  accomplishment  has  grown 
stronger  from  year  to  year.  So  that,  my  friends,  I  feel  that 
this  is  but  the  beginning  of  the  end  which  will  accom- 
plish the  purposes  for  which  we  are  assembled  here. 
And  with  the  assurance  that  in  every  way  that  I  can 
I  will  serve  with  you,  I  am  at  the  service  of  this  organi- 
zation. (Applause.) 


14  INDUSTRIAL   CONCILIATION. 

MR.  STRAUS:  I  am  sure  we  are  all  grateful  for  the 
encouraging  words  that  have  already  been  spoken  and 
for  the  attendance  of  men  here  who  come  from  a  far  dis- 
tance in  order  to  lend  their  help  to  the  proper  considera- 
tion of  this  most  important  subject.  I  will  call  upon  a 
gentleman  who,  though  in  the  spiritual  field,  has  done 
great  work  in  the  practical  field  as  well,  who  has  also 
come  from  a  long  distance,  and  whom  I  have  the  pleasure 
of  calling  upon:  the  Most  Reverend  John  Ireland, 
Archbishop  of  St.  Paul. 

ARCHBISHOP  IRELAND:  Gentlemen  of  the  conference — 
When  I  received  the  invitation  to  attend  this  conference 
I  believed  it  was  for  me  a  solemn  duty  to  accept  the 
proffered  honor.  A  minister  of  religion,  I  held  that  it 
was  my  duty  to  contribute  in  any  way  within  my  power 
to  what  makes  for  peace,  for  harmony,  for  brotherhood 
among  men,  for  the  growth  and  elevation  of  humanity. 
A  minister  of  a  Church  whose  supreme  Pontiff  has  de- 
clared that  the  greatest  social  question  to-day  is  the 
maintenance  of  peace  between  capital  and  labor  and  has 
impressed  upon  the  leaders  of  the  people  that  they  must 
unceasingly  strive  to  bring  about  and  preserve  such 
peace,  I  believed  that  it  was  my  duty  to  hearken  to  an 
appeal  so  much  in  harmony  with  his  encyclicals.  And 
glad  I  am  that  I  was  invited  hither,  and  that  I  am  with 
you  to-day.  As  I  look  around  this  hall,  notice  the  men 
that  are  here  assembled,  and  listen  to  the  addresses  that 
are  made,  I  realize  the  immense  possibilities  for  good 
that  exist  in  the  conference. 

There  has  been  not  un  frequently  discord  between  em- 
ployers and  employees,  discord  that  has  wrought  great 
harm  to  the  interests  of  both  classes.  The  chief  cause 
of  such  discord  is  this,  that  employers  and  employees 


INDUSTRIAL  CONCILIATION.  15 

have  not  sufficiently  been  brought  together,  have  not 
sufficiently  looked  into  the  faces  of  one  another,  drunk 
in  the  ideas  of  one  another,  and  felt  the  warmth  of  the 
hands  and  hearts  of  one  another. 

Bishop  Potter  remarked  that  something  more  than 
power  is  needed  for  the  quieting  of  social  agitation; 
that  ideas  are  needed;  and  that  ideas  will  come  from 
our  mutual  discussions.  But  there  is  something  else 
needed  besides  either  power  or  ideas:  it  is  brotherhood,  \/ 
the  manifestation  of  the  love  which  as  men,  as  children 
of  God,  we  owe  to  one  another,  and  which,  I  am  sure, 
we  feel  in  our  hearts  for  one  another!  This,  too,  will  be 
a  result  of  the  conference. 

I  have  met  with  all  classes  of  men.  I  have  met  with 
rich  and  with  poor,  with  employers  and  with  employees, 
with  capitalists  and  with  workmen.  I  think  I  know  the 
ideas  and  the  feelings  of  men  on  both  sides  of  the  ques- 
tion. And  I  am  satisfied  that  what  is  necessary  for 
mutual  understanding  and  for  industrial  peace  is  to 
create  a  channel  by  which  there  can  be  between  classes 
an  interchange  of  ideas  and  a  mutual  flow  of  brother- 
hood. Employers  realize  that  they  are  brothers  of  their 
fellow-men,  that  their  fellow-men  are  their  brothers.  I 
do  not  know  the  employer  who  is  not  ready  to  say  that 
the  ideal  and  proper  condition  of  the  workman  is  that 
sufficient  means  be  earned  by  him  to  enable  him  to 
lead  a  life  becoming  to  a  man,  becoming  to  a  child  of 
God ;  and  that  efforts  should  be  made  by  all  that  indus- 
trial operations  may  afford,  in  all  cases,  to  the  workman 
such  sufficient  means.  /  I  do  not  know  the  capitalist  who 
thinks  that  a  man,  whoever  he  be,  however  poor  and 
weak,  is  a  mere  piece  of  machinery,  valued  only  as  a 
producer  of  industrial  force.  Capitalists  who  would 


16  INDUSTRIAL   CONCILIATION. 

have  so  thought  may  possibly  have  existed  in  past  times 
or  may  possibly  exist  in  other  lands  than  ours.  Such  do 
not  exist  to-day  in  America.  On  the  other  hand  I  do 
not  know  the  working  man  who  does  not  confess  that  his 
arms  are  of  no  account  to  earn  a  livelihood  for  himself 
and  his  family  unless  he  be  assisted  by  the  leaders  of  in- 
dustry who  gather  in  the  financial  resources  needed  to 
purchase  machinery  and  to  open  markets,  whose  superior 
ability  and  judgment  are  required  to  marshal  into  a  com- 
pact and  successful  phalanx  scattered  and,  so  to  speak, 
inorganic  labor.  That  the  workman  may  have  an  oppor- 
tunity to  earn  a  livelihood  there  must  be  within  his  reach 
capitalists  and  employers.  Nor  are  there  laborers  to- 
day in  America  who  do  not  realize  that  whatever  may  be 
the  equality  of  men  as  to  legal  and  political  rights,  there 
is  among  men  inequality  of  talent,  of  power,  of  industry, 
arising  from  the  very  nature  of  each  one,  that  through 
the  thousand  circumstances  of  society  there  is  among 
men  inequality  of  circumstances  and  of  opportunities, 
and  that  as  a  consequence  there  will  be  necessarily  and 
always  among  men  inequality  of  possession  of  the  things 
of  earth. 

But  why  is  it  that  despite  such  convictions  strikes 
occur  and  difficulties  and  misunderstandings  arise  be- 
tween employers  and  workmen  ?  Largely  because  em- 
ployers and  workmen  remain  apart;  because  they  do 
not  know  one  another  sufficiently;  because  often  men  of 
one  class  or  of  the  other  act  rather  under  impulse  than 
as  the  result  of  sober  reflection.  If  when,  in  the  future, 
difficulties  threaten  harmony  and  peace — -we  know  human 
nature  too  well  not  to  imagine  that  difficulties  will  not  be 
forthcoming — men  meet,  inquiring  what  is  the  cause  of 
complaint,  striving  to  understand  one  another,  difficulties 


INDUSTRIAL   CONCILIATION.  \J 

to  a  large  extent  at  least  will  be  overcome.  *As  a  storm 
approaches,  instead  of  looking  from  a  distance  at  one  an- 
other with  angry  feelings,  let  men  touch  hands,  frankly 
admit  that  the  good  of  all  requires  a  calm  atmosphere,  and 
in  nine  cases  out  of  ten  the  storm  will  be  turned  aside.) 

This  is  the  aim  of  our  conference.  There  is  nothing 
more  encouraging  in  the  field  of  labor  and  capital  to-day 
than  this  very  fact,  that  to-day  men  of  all  classes  come 
together  and  say  "Let  us  have  peace."  Mr.  Hanna, 
speaking  from  the  fulness  of  his  heart,  declares  himself 
ready  to  make  any  sacrifice  for  the  sake  of  industrial 
peace:  his  words  echo  the  thoughts  and  feelings  of  all 
who  are  assembled  with  him,  employers,  workmen,  repre- 
sentatives of  the  general  public,  friendly  alike  to  em- 
ployers and  to  workmen.  With  this  spirit  dominating 
our  assembly,  its  success  is  at  once  assured. 

As  the  honored  Chairman  has  said,  in  no  country  of 
the  world  is  there  such  an  opportunity  for  industrial 
peace  and  mutual  understanding  as  there  is  in  Amer- 
ica. America  is  a  democratic  country.  In  political  and 
social  strivings  Americans  start  from  the  principle  that 
they  all  are  fellow-citizens  and  brothers.  Their  politi- 
cal constitution  makes  it  plain  that  in  all  things  they 
ought  in  the  name  of  brotherly  love  to  understand  one 
another,  respect  and  safeguard  the  rights  of  one  another.' 
Elsewhere  classes  of  men  by  right  of  birth  and  of  titles 
may  imagine  themselves  better  than  others:  elsewhere 
classes  of  men  bowed  down  through  long  centuries  of 
servitude,  thinking  that  no  ray  of  sunshine  can  peer 
through  the  overhanging  cloud,  find  room  in  their  hearts 
only  for  despair  and  hatred.  Pride  on  one  side,  despair 
on  the  other,  produce  discord  and  revolution.  In  Amer- 
ica, conditions  are  different.  Here  all  citizens  are 


1 8  INDUSTRIAL   CONCILIATION. 

compelled,  when  standing  before  the  electoral  urn,  to 
acknowledge  an  equal  citizenship  with  other  men,  and  a 
common  brotherhood.  Here  men  who  have  merit  may 
rise;  the  poor  man,  the  workman  of  to-day,  may  be- 
come the  capitalist  and  the  employer  of  to-morrow. 
Americans  are  under  especial  obligation  to  establish  in 
their  land  industrial  and  social  peace.  Mr.  Chairman, 
I  know  it,  from  all  countries  in  the  world  to-day  men, 
lovers  of  their  kind,  men,  workers  for  humanity  and  for 
religion,  look  toward  the  United  States  for  a  solution  of 
this  mighty  question  of  the  relations  of  capital  and  labor. 
In  every  country  of  Europe  I  have  heard  it  said:  "If 
you  cannot  in  America  settle  this  question,  the  task  is 
hopeless. ' '  If  the  fact  of  our  meeting  to-day  were  known 
throughout  the  world,  tens  of  thousands  of  anxious  eyes 
would  be  turned  toward  this  hall  and  from  tens  of  thou- 
sands of  hearts  prayers  would  go  up  to  the  supreme 
Father  that  our  counsels  be  wise  and  our  efforts  be  fruit- 
ful. From  heaven  the  God  of  peace,  the  common 
Father  of  heaven,  blesses  our  meeting. 

MR.  EASLEY:  Mr.  Chairman,  there  are  two  gentlemen 
present  this  morning  whom  I  think  the  committee  would 
like  to  hear  from  before  we  adjourn.  One  is  Mr.  Wil- 
liam H.  Pfahler,  of  Philadelphia,  a  large  stove  manu- 
facturer, who  is  regarded  as  the  father  of  the  idea  of 
organization  of  employers.  About  fifteen  years  ago  he 
organized  the  stove  manufacturers,  and  five  years  later 
he  found  that  worked  so  well  that  he  was  instrumental 
in  organizing  the  National  Founders'  Association,  an 
organization  of  some  six  hundred  manufacturers,  and  a 
few  years  after  that  the  National  Metal  Trades  Associa- 
tion of  six  hundred  manufacturers. 


INDUSTRIAL   CONCILIATION.  19 

The  second  gentleman  is  Mr.  John  Phillips,  who  has 
for  nineteen  years  been  the  Secretary  of  the  National 
Union  of  Hatters.  Mr.  Phillips  is  not  prepared  to 
speak  this  morning,  but  being  the  only  national  repre- 
sentative of  labor  organizations  present  is  willing  to 
speak  before  the  session  closes. 

We  have  also  with  us  some  ten  representatives  of  the 
largest  organizations  in  New  York  City. 

THE  CHAIRMAN:  Mr.  Pfahler,  we  shall  be  most  pleased 
to  have  you  make  some  remarks  from  your  vast  business 
experience  on  this  subject. 

MR.  WILLIAM  H.  PFAHLER:  I  only  arrived  in  the 
room  a  few  moments  ago,  but  I  fail  to  realize,  after  the 
few  words  I  have  heard  since  I  came  into  the  room, 
that  there  is  a  single  other  word  to  say  on  this  proposi- 
tion. In  the  few  moments  that  I  listened  to  the  closing 
remarks  that  you  have  all  heard  I  felt  that  I  could  not 
go  out  of  this  room  without  assuming  the  moral  respon- 
sibility which  has  been  put  before  us  in  such  firm  and 
certain  tones.  There  is  absolutely  no  doubt  in  my  mind 
that  this  country  is  ready  to-day  to  take  the  initial  steps 
in  social  progress  so  ably  outlined,  and  I  am  more  than 
pleased  to  know  from  one  who  is  an  authority  on  the 
question  that  the  world  is  looking  to  this  country  to 
solve  this  problem.  Here  and  here  only  can  it  be  fought 
out,  and  here  and  here  only  can  it  be  ended  as  it  must 
be  finally  in  the  progress  of  humanity. 

I  have  thought  along  this  line  for  many  years  and  I 
have  wondered  why  it  was,  first  as  the  employer  of  a  few 
men,  that  there  was  that  lack  of  harmony  which  common 
sense  indicated  there  should  be.  I  often  wondered 
when  I  was  superintendent  of  a  small  plant  why  it  was 
that  I  went  to  my  home  to  devise  ways  and  means  for 


20  INDUSTRIAL    CONCILIATION. 

earning  money  and  distributing  it  among  my  employees 
on  Saturday  and  that  they  should  go  from  my  shop  some- 
times to  study  means  to  prevent  the  progress  of  that  very 
work.  It  seemed  an  unnatural  condition.  It  seemed  a 
condition  which  arose  from  some  cause  that  I  could  not 
understand.  And  I  have  often  tried  to  solve  it.  To 
my  mind  it  goes  back  to  that  natural  process  which 
underlies  every  beautiful  piece  of  nature  and  every 
mechanism  of  nature.  It  is  the  process  of  units.  We 
have  forgotten  to  watch  the  units  that  go  to  make 
up  a  great  body  and  a  great  proposition  of  any  kind. 
I  have  with  perfect  freedom,  talking  with  some  of  the 
gentlemen  here  who  represent  the  great  labor  unions 
of  this  country,  said,  and  I  believe  it,  that  the  struggle 
to-day  is  the  struggle  to  understand  the  progress  that  is 
going  on  in  commercial  and  mechanical  circles  which  is 
changing  the  unit  by  which  everything  must  be  measured. 
There  was  a  time  I  believe  when  the  unit  of  time  was  the 
measure  of  work.  There  was  a  time  when  the  unit  of 
energy  was  the  measure  of  work.  But  to-day  if  one  thing 
is  certain  it  is  that  the  unit  of  results  is  the  only  measure 
that  can  be  applied  to  the  workman,  to  the  employer,  or 
to  the  citizen. 

We  are  in  an  age  when  units  are  changing.  We  are 
in  an  age  when  combined  effort  is  the  only  means  of  suc- 
cess. And  no  matter  what  our  short-sighted  views  some- 
times may  develop  when  we  look  at  progress  and  think  it 
is  eliminating  the  units,  I  believe  the  unit  is  just  begin- 
ning to  work,  I  believe  the  unit  to-day  which  is  going  to 
establish  the  standard  of  results  as  the  measure  of  every 
man  is  going  to  make  every  man  a  better  man.  It  can't 
help  but  do  it.  For  that  reason  years  ago  in  my  own  in- 
dustry, which  is  the  manufacturing  of  stoves,  a  few  of 


INDUSTRIAL   CONCILIATION.  21 

our  leading  manufacturers  conceived  the  idea  that  we 
must  become  a  unit  to  accomplish  any  result  from  our 
standpoint.  Since  the  Iron  Moulders'  Union,  which  was 
then  and  is  now  an  ably  managed,  conservative  body,  was 
approaching  every  question  of  labor  from  a  standpoint  of 
units  which  represented  to  it  all  men  employed  in  that 
industry — we  felt  we  could  only  meet  it  by  a  standard 
of  co-operation  of  the  employer.  We  organized  an 
association  at  that  time,  and  it  was  a  great  many  years 
ago,  for  defence.  We  began  that  association  to  defend 
our  business  against  the  aggressions  of  the  Iron  Moulders' 
Union.  We  worked  along  those  lines  two  or  three  years, 
fighting  each  issue  as  it  arose.  But  we  very  soon  learned 
that  our  point  was  wrong,  that  our  approach  to  the  ques- 
tion was  wrong,  and  we  changed  the  policy  of  that  As- 
sociation to  one  of  negotiation,  to  that  of  an  association 
which  should  from  our  standpoint  show  the  men  who 
were  in  our  employ  the  condition  of  affairs,  should  learn 
the  condition  of  their  lives  and  industries,  and  should 
co-operate  upon  a  line  which  would  produce  the  best 
results.  The  result  of  it  was  that  for  eleven  years  there 
has  not  been  a  strike  in  the  stove  industry.  Why? 
We  have  approached  that  subject  through  representatives 
of  each  body,  and  if  there  is  anything  valuable  in  this 
country  to-day  it  is  the  representative  system,  so  long  as 
those  representatives  are  well  qualified  men  to  carry  out 
their  purposes. 

We  meet  yearly.  We  confer  upon  the  condition  of 
business  and  the  wages.  Those  wages  are  settled  each 
year  for  a  year,  and  I  am  proud  to  say  that  they  never 
for  one  moment  have  been  violated  on  either  side  of  the 
contract  (applause),  that  no  contract  ever  made  with 
the  Iron  Moulders'  Union  by  our  Association  has  been 


22  INDUSTRIAL   CONCILIATION. 

violated  by  either  party.  And  I  don't  think  that  I  am 
making  unfair  use  of  trade  secrets  when  I  say  that  in 
1893  and  in  1894,  when  all  of  you  who  were  manufac- 
turers and  workmen  know  the  condition  of  affairs, 
when  it  was  absolutely  certain  from  the  employers' 
standpoint  that  we  could  not  successfully  market  two 
thirds  of  our  products,  a  condition  which  always  termi- 
nates in  a  reduction  of  price  by  the  unwise  manufac- 
turer, the  representatives  of  the  Iron  Moulders'  Union 
came  into  our  conference  and  asked  for  a  reduction  in 
their  wages.  They  asked  it  because  they  believed  it 
would  make  progress,  they  believed  it  would  enable  us 
to  market  our  products.  They  believed  it  was  the  best 
thing  to  do  from  their  standpoint.  And  I  want  to  em- 
phasize the  point  that  it  was  the  result  of  their  considera- 
tion of  conditions  which  made  them  believe  that  a 
reduction  of  wages  would  give  them  more  days'  work 
perhaps  and  better  results.  We  showed  them  from  our 
standpoint  the  falsity  of  that  proposition.  The  result 
was  there  was  no  reduction  in  wages.  The  result  was 
there  was  no  reduction  in  the  selling  price  of  our  prod- 
ucts. We  all  suffered  alike, — the  manufacturer  lost 
upon  his  investment  by  reason  of  the  decreased  output, 
the  workman  lost  in  the  annual  summing  up  of  his  year's 
work,  but  we  lost  equally.  I  only  cite  this  fact  to  show 
that  there  was  a  point  upon  which  our  united  efforts 
brought  about  a  result  beneficial  to  both,  and  in  support 
of  what  the  gentleman  has  said,  that  there  can  be  no  loss 
in  any  way  by  a  united  effort  to  produce  harmonious 
relations  between  the  employer  and  the  employee. 
(Applause.) 

MR.  STRAUS:  Gentlemen  of  the  conference,  there  are 


INDUSTRIAL   CONCILIATION.  2$ 

several  other  gentlemen  we  wish  to  hear  from  this  morn- 
ing, but  I  wish  to  tell  you  as  a  matter  of  information 
that  when  our  conference  of  this  morning  ends  it  will  be 
until  to-morrow  morning,  when  we  will  have  with  us  I 
hope  every  gentleman  who  is  present  now  and  also  the 
national  labor  leaders  of  the  country,  Mr.  Gompers,  Mr. 
Mitchell,  Mr.  Fox,  Mr.  Keefe,  Mr.  Shaffer,  and  a  num- 
ber of  others,  who  have  adjourned  their  meeting  at  Scran- 
ton  for  the  purpose  of  being  present  here  to-day,  but 
unfortunately,  on  account  of  the  delay  of  the  trains  by 
reason  of  the  storm,  they  were  not  able  to  arrive  in  time 
for  this  morning's  session. 

I  think  I  also  can  say  further  that  there  will  be  some 
material  results  from  this  conference,  and  one  of  these 
results  I  think  I  can  prophesy  will  be  a  working  Execu- 
tive Committee  composed  equally  from  the  ranks  of 
labor  and  from  the  ranks  of  capital,  together  with  a  dele- 
gation or  a  representation  from  what  may  be  called  the 
great  public.  That  Executive  Committee  will  be  a  per- 
manent body  ready  to  take  up  any  question  of  national 
importance  between  capital  and  labor  wherever  and 
whenever  it  may  arise.  That  body,  being  permanent, 
can  be  called  into  action  at  any  moment  and  will  be  rep- 
resentative of  all  the  interests  involved,  one  that  is  not 
appointed  for  any  special  occasion  but  appointed  for 
all  occasions.  And  I  think  when  that  committee  is 
selected  it  will  be  seen  that  it  will  be  representative  in 
the  largeness  of  the  interests  it  stands  for  and  the  brains 
that  represent  those  large  interests. 

I  shall  now  ask  Mr.  John  Phillips,  the  Secretary  of 
the  National  Hatters'  Union,  to  address  us.  I  know 
Mr.  Phillips  is  averse  to  speaking  in  public,  but  I  am 
sure  upon  an  occasion  like  this  he  will  give  us  the  benefit 


24  INDUSTRIAL   CONCILIATION. 

of  his  thoughts  upon  the  subjects  with  which  he  is  con- 
versant. I  call  upon  Mr.  John  Phillips. 

MR.  JOHN  PHILLIPS:  Mr.  Chairman  and  gentlemen — 
Unfortunately  for  me  and  also  for  you,  the  elements 
have  conspired  to  prevent  the  attendance  of  the  promi- 
nent labor  leaders.  I  am  not  a  prominent  labor  leader  by 
any  means.  I  wish  to  tell  you  that  in  advance.  And 
if  the  prominent  labor  leaders  were  here,  I  would  not  be 
called  on  to  say  a  word.  (Laughter.)  Your  Secretary 
came  here  and  asked  me  to  say  a  word  on  the  labor  side 
of  the  question.  I  made  no  preparation  to  speak  here; 
I  came  to  listen — sent  here  by  the  National  Executive 
Board  of  the  United  Hatters  of  North  America  to  repre- 
sent them  at  this  meeting. 

Having  been  a  member  of  Bishop  Potter's  Board  of 
Mediation  and  Conciliation  for  years,  I  feel  that  I  am 
at  home  in  a  meeting  where  mediation,  conciliation, 
and  arbitration  are  to  be  the  ruling  subjects.  Bishop 
Potter's  Board  of  Mediation  and  Conciliation  seems  to 
have  fallen  into  what  a  distinguished  gentleman  at  one 
time  described  as  "innocuous  desuetude."  But  I  like 
to  be  where  mediation,  conciliation,  and  arbitration  are 
to  be  talked  of. 

The  organization  to  which  I  belong  believes  firmly  in 
mediation  and  arbitration  and  conciliation.  They  are 
totally  averse  to  strikes,  totally  averse  to  men  quitting 
their  work  at  any  time  for  any  cause,  be  it  trivial  or 
serious.  They  believe  in  having  small  committees  in 
shops  and  in  districts  to  settle  the  troubles,  and  keep 
the  men  at  work.  There  is  nothing  gained  by  the  men 
quitting  their  work,  we  believe.  (Applause.) 

We  have  a  system  in  our  trade  that  when  trouble 
occurs  in  any  factory,  the  men  stay  at  their  work. 


INDUSTRIAL   CONCILIATION.  2$ 

There  is  a  committee  of  three  in  the  factory  who  take  up 
the  question,  and  they  go  off  by  themselves  and  take  the 
testimony  of  the  men,  and  then  they  hear  the  manufac- 
turer's side  of  the  question,  and  they  settle  the  trouble. 
The  men  keep  on  with  their  work  and  earn  their  money, 
instead  of  going  out  on  strike.  (Applause.)  We  have 
educated  our  people  up  to  the  standard  that  they  must 
not  quit  their  work  on  any  pretext,  and  a  strike  cannot 
take  place  unless  by  the  consent  of  the  General  Execu- 
tive Board,  consisting  of  the  four  executive  officers,  and 
until  they  meet  and  investigate  the  matter  no  man  is 
allowed  to  quit  his  work. 

We  find  this  a  great  improvement  on  the  old  system 
of  quitting  work.  All  troubles  must  be  referred  to  the 
Shop  Committee,  and  if  they  cannot  settle  with  the  em- 
ployer they  then  call  in  the  Local  Executive  Board, 
which  consists  of  four  officers  of  the  Local  Association, 
and  if  they  cannot  settle  the  matter  it  is  referred  to  the 
National  Executive  Board,  and  their  decision  is  final. 
We  very  seldom  have  a  strike.  It  is  a  last  resort,  as  our 
National  Executive  Board  will  not  permit  a  strike  unless 
all  other  means  fail. 

We  make  contracts  with  our  employers  about  every  six 
months.  We  arrange  our  wages  for  the  ensuing  six 
months.  The  manufacturer  then  knows  what  he  has  to 
pay  for  his  work.  That  contract  is  signed  by  a  com- 
mittee of  the  men  employed  at  the  factory,  and  the 
manufacturer  puts  his  name  to  it,  and  when  that  is 
tacked  up  on  the  wall  its  provisions  stand  until  the  date 
expires.  No  man  can  break  it  on  either  side.  We  be- 
lieve in  living  up  to  our  contracts  at  all  hazards. 

There  was  a  manufacturer  in  our  trade  in  this  city, 
Mr.  Robert  Dunlap,  who,  I  am  sorry,  is  now  dead.  If 


26  INDUSTRIAL   CONCILIATION. 

all  the  manufacturers  in  our  trade  had  been  like  him  we 
would  not  have  needed  any  hatters'  union.  (Applause.) 
We  would  not  need  any  labor  organizations  at  all  in  our 
trade.  He  told  me  on  one  occasion  that  he  would  never 
have  arbitration  in  his  factory.  I  quote  his  exact  words, 
as  far  as  I  can  remember. 

' '  If  I  have  any  trouble  in  my  factory  and  I  cannot  settle  it  in 
about  fifteen  minutes,  with  a  committee  of  three  level-headed  men, 
I  will  give  up  the  business.  If  we  sit  down  and  we  mean  business, 
and  mean  to  treat  each  other  fairly  and  honestly  and  justly,  we  will 
settle  our  troubles  inside  of  fifteen  minutes." 

And  it  is  true.  He  could  do  it.  He  could  talk  to  the 
men,  and  there  would  be  a  giving  way  on  both  sides,  and 
the  angles  and  the  sharp  corners  would  be  rounded  off, 
and  by  and  by  it  would  come  out  all  right.  (Laugh- 
ter.) Any  other  way  is  no  use,  in  the  opinion  of  the 
trade  I  represent.  We  sit  down  with  the  employers  on 
terms  of  equality,  and  talk  our  troubles  over,  and  if  an 
employer  wants  to  make  a  contract  for  two  or  three  years 
we  will  make  it,  if  it  is  a  good  one,  because  we  know  after 
we  sign  that  contract  we  will  have  peace  in  that  factory 
for  two  or  three  years.  And  that  is  what  we  want,  peace 
and  fraternity  and  good  feeling. 

Before  I  sit  down  I  want  to  say  something,  which 
it  would  be  criminal  for  me  to  leave  the  room  without 
saying.  I  always  had  an  opinion  that  Senator  Hanna 
was  antagonistic  to  organized  labor.  (Laughter.)  I 
received  a  communication  the  other  day  from  a  Mc- 
Kinley  Memorial  Committee  in  reference  to  a  subscrip- 
tion for  a  monument,  and  I  wrote  back  to  the  person 
from  whom  I  received  it,  that  I  would  lay  the  matter 
before  the  General  Executive  Board,  but  I  said,  "I 


INDUSTRIAL   CONCILIATION.  2? 

regret  very  much  that  on  your  list  of  trustees  I  find  some 
enemies  of  organized  labor."  I  also  said,  "I  regret  to 
say  that  I  find  on  your  printed  matter  there  is  no  label 
of  the  Printers'  Union,  and  I  can't  recognize  it  on  that 
account."  I  had  Senator  Hanna  in  mind,  when  I  wrote 
that  letter,  as  one  of  the  enemies  of  organized  labor. 
(Laughter.) 

Now,  Mr.  Chairman  and  gentlemen,  I  am  always  open 
to  conviction.  I  am  always  pleased  to  be  set  right  when 
I  am  wrong.  I  was  astonished  to  hear  Senator  Hanna 
say  what  he  did,  and  hereafter  I  will  have  a  different 
opinion  of  him.  (Applause.)  I  listened  with  pleasure 
to  his  remarks;  he  spoke  with  sincerity,  and  I  am  willing 
at  any  time  to  join  hands  with  anybody  and  everybody 
who  is  striving  for  industrial  peace. 

Apologizing  for  my  crude  and  disconnected  remarks, 
and  hoping  that  some  prominent  labor  advocates  will  be 
heard  later  on,  I  close  by  thanking  you  for  your  atten- 
tion. (Applause.) 

MR.  STRAUS:  Gentlemen,  the  last  speaker  needs  no 
comment.  He  is  his  own  eloquent  commentator,  and 
we  thank  him  for  the  wisdom  that  he  has  given  us. 

We  have  here  several  important  representatives  of 
labor  and  I  think  that  nothing  has  been  more  damaging 
to  the  hat  trade  or  to  the  wearers  of  hats  than  the  prod- 
ucts of  the  business  that  is  represented  by  the  gentleman 
upon  whom  I  will  next  call.  I  will  call  upon  the  Pres- 
ident of  the  New  York  Bricklayers'  Association  (laugh- 
ter), Mr.  John  J.  Donnelly. 

MR.  JOHN  J.  DONNELLY:  I  want  to  say  to  you  I  have 
to  make  almost  the  same  statement  that  my  friend  Mr 
Phillips  made,  although  he  is  connected  with  a  different 


28  INDUSTRIAL   CONCILIATION. 

class  of  business  altogether  that  does  not  come  in  contact 
or  connection  with  us;  I  say  for  the  members  of  the 
organization  I  represent  that  at  any  time  they  attempt  to 
buy  a  hat  they  always  take  particular  care  to  look  at  the 
band  inside  and  see  that  it  has  the  hatters'  union  label. 

Some  seventeen  or  eighteen  years  ago  in  this  large  city 
the  bricklayers  were  similar  to  quite  a  number  of  other 
trades.  They  would  leave  their  tools  on  the  scaffold  or 
put  them  in  the  tool-house  at  six  o'clock  in  the  evening, 
go  to  their  homes,  come  out  the  next  morning,  and  they 
didn't  know  whether  they  would  go  to  work  or  not. 
Strife  existed  between  the  members  of  the  organization 
and  the  individual  employers,  who  were  not  banded  to- 
gether at  that  time,  as  the  Mason  Builders'  Association  of 
New  York  City  has  since  become.  One  of  the  greatest 
strikes,  I  think,  that  ever  occurred  in  this  town  was  on 
the  2ist  of  July,  1884.  That  strike  lasted  nine  months. 
It  lasted  six  months  before  we  made  an  effort  to  call  a 
conference.  I  am  very  happy  and  proud  to  say  that  for 
sixteen  years  the  Mason  Builders  of  this  city  and  the 
Bricklayers'  Union  have  stood  as  one  body,  intact.  No 
strikes  have  ever  taken  place,  whether  for  the  most  trivial 
question  or  the  most  important,  until  last  spring.  There 
was  a  misunderstanding  relative  to  a  certain  building 
now  being  erected  and  not  quite  finished  in  this  town, 
and  that  nearly  culminated  in  a  general  strike  and  a 
lockout.  In  fact  there  was  a  lockout  started  but  some 
of  the  wise  heads  nipped  it  in  the  bud  before  it  went  ten 
days.  The  feeling  to-day  between  the  Mason  Builders 
and  the  Bricklayers'  Union  of  this  city  is  just  the  same 
as  it  has  been  for  the  last  seventeen  years. 

I  want  to  state  that  as  far  as  our  organization  is  con- 
cerned we  have  benefited  considerably  by  arbitration, 


INDUSTRIAL   CONCILIATION.  2Q 

and  as  long  as  there  is  a  Bricklayers'  Union  in  this  city 
and  I  have  anything  to  do  in  connection  with  it  I  will 
always  try  to  have  that  relation  maintained.  I  have 
never  done  anything  but  look  after  the  interests  of  the 
employer  as  well  as  the  employee  during  the  eleven 
years  that  I  have  been  associated  with  the  body.  I 
hope  that  every  man  who  attends  this  conference  who 
is  not  at  peace  with  his  employer  will  take  heed  from 
these  proceedings,  and  make  good  will  prevail.  (Ap- 
plause.) 

MR.  STRAUS:  We  thank  Mr.  Donnelly  for  his  remarks. 

Gentlemen,  the  more  we  hear  upon  this  subject  the 
more  we  find  that  a  large  portion  of  the  difficulties  results 
from  misunderstandings.  There  is  Mr.  Phillips,  who  has 
just  informed  us  of  his  misunderstanding  as  to  the  posi- 
tion of  Mark  Hanna.  Now  here  is  Mr.  Donnelly  who 
informs  us  that  the  only  difficulty  that  has  arisen  for  a 
long  time  between  the  masons  and  the  bricklayers  was 
also  largely  the  result  of  a  misunderstanding.  That  is 
what  we  are  here  for,  to  clear  away  these  misunder- 
standings. 

I  have  the  pleasure  of  calling  next  upon  Mr.  James 
Ryan,  the  Vice-President  of  the  New  York  State  Federa- 
tion of  Labor,  and  the  sixth  Vice-President  of  the  Typo- 
graphical Union. 

MR.  JAMES  RYAN:  I  feel  it  a  great  privilege  to  have 
the  opportunity  of  addressing  such  a  body  of  gentlemen 
as  are  here  this  morning,  employers  and  clergymen,  and 
high  dignitaries  of  the  church.  I  am  glad  to  hear  the 
sentiments  expressed  of  harmony  and  good  will — not  only 
expressed  but  echoed  by  applause. 

I  must  say  that  Mr.  Mark  Hanna  by  his  remarks  to-day 


30  INDUSTRIAL   CONCILIATION. 

will  go  far  to  promote  good  feeling  between  working 
men's  organizations  and  their  employers,  will  go  farther 
than  any  sentiments  we  have  heard  during  the  period  of 
fifty  years  in  our  experience  with  union  labor  (applause). 
I  will  show  you  the  difference  between  this  meeting  and 
meetings  I  attended  fifty  years  ago  when  I  first  joined  a 
trade-union.  Then  I  was  invited  to  hear  men  talk  who 
would  tell  us  what  we  were.  And  there  was  a  vast  dif- 
ference in  the  sentiments.  We  are  up  against  practical 
men  now,  and  these  gentlemen  who  have  spoken  this 
morning  are  desirous  and  anxious,  without  bringing  in 
scientific  problems  to  bear  upon  the  matter,  to  see  labor 
and  capital  get  together.  Let  me  give  you  a  sample  of 
the  advice  that  was  given  us  at  that  time.  Professor 
Collins,  of  Oxford: 

"You  have  no  right  to  be  outside  the  gates  of  your  factory  wait- 
ing for  the  bell  to  ring  to  take  you  inside.  You  be  at  your  work 
bench  when  the  bell  rings  and  prepared  to  go  on  with  your  work. 
And  while  you  are  at  your  work  produce  all  you  can.  Produce  it  as 
well  as  you  can  and  as  much  as  you  can.  Don't  waste  your  time 
watching  the  clock.  Don't  turn  your  heads  around  to  look  at  the 
clock  to  see  how  the  time  is  going.  When  the  time  is  to  quit  your 
employer  knows  that  better  than  you  and  he  will  arrange  things,  he 
will  communicate  the  time  to  quit ;  and  don't  be  in  too  much  of  a 
hurry  to  quit  then.  When  you  meet  outside  to  talk  over  things, 
don't  discuss  your  hours  of  labor  and  your  wages,  what  they  should 
be.  Your  employer  understands  the  markets  and  he  knows  them 
better  than  you  do,  and  if  you  leave  the  hours  of  labor  and  the  wages 
to  your  employer  he  knows  how  much  he  can  afford  to  pay  you, 
and  it  is  much  better  to  do  that  than  to  form  combinations." 

We  objected  to  that  pabulum.  We  told  our  employers 
that  we  considered  the  business  could  afford  to  pay  bet- 
ter wages  than  we  were  receiving.  The  next  was  a  man 
who  ran  a  printing-office  in  London.  When  I  first  went 


INDUSTRIAL   CONCILIATION.  31 

to  work  for  him  they  had  two  hand  presses.  Now  they 
have  twenty-two  steam  presses.  I  was  a  steam  printer. 
And  I  was  deputized  to  go  to  him  and  ask  him  to  give  us 
nine  hours'  work  without  reduction  of  pay.  He  said  to 
me:  "Can  you  give  me  any  good  reason  why  I  should  pay 
you  ten  hours  for  nine  hours'  work."  "Yes,  sir,  I  believe 
I  can. "  "  Let  me  hear  it. "  "  The  profit  you  make  out 
of  the  business;  you  can  afford  to  pay  that."  "  What 
has  my  profit  to  do  with  you  ?"  "  Very  much.  When  I 
worked  for  you  before  you  had  two  hand  presses.  You 
have  now  twenty-two  steam  presses  and  many  hundred 
people  at  work  when  you  had  only  nine  or  ten.  You 
never  made  that  out  of  your  losses.  You  made  it  out  of 
your  profits."  He  gave  in  to  us.  On  the  other  hand,  I 
call  your  attention  to  the  advancement  which  will  accrue 
to  industry  from  the  co-operation  of  the  laborers  and  the 
capitalists,  the  employers  here  to-day,  and  I  wish  to  echo 
the  sentiments  expressed  by  Mr.  Mark  Hanna.  You 
will  socially  improve,  you  will  come  together  in  harmony, 
and  that  is  more  than  any  other  improvement,  more  than 
any  other  ism.  I  contend  that  trade-unionism  has  raised 
working  men  more  than  any  other  institution  in  the  world. 
If  we  have  fought  with  employers  we  have  worked  hand 
in  hand  with  them.  I  have  always  objected  to  the  lazy 
man.  Our  union  is  based,  as  Mr.  Phillips  has  told  you, 
upon  a  workman  keeping  his  contract.  If  a  man  gives  me 
one  dollar  a  day  or  five  dollars  a  day  and  I  have  agreed 
to  take  it  I  am  bound  to  work  for  that  to  the  best  of  my 
ability.  But  I  have  a  right  to  try  to  get  twenty-five  if  I 
can. 

But  the  sentiments  of  Mark  Hanna  in  closing  his  ad- 
dress have  been  mine  all  through  life.  The  more  we 
unite  and  combine  our  efforts  the  sooner  we  reach  the 


32  INDUSTRIAL   CONCILIATION. 

higher  plane  of  society.  This  is  an  effort  in  the  right 
direction;  it  will  improve  us  socially  and  morally.  (Ap- 
plause.) 

MR.  STRAUS:  Gentlemen,  we  have  in  this  room  prob- 
ably— and  I  think  I  may  leave  off  the  word  "probably  " — 
the  greatest  example  of  rise  from  the  ranks  of  labor  to 
the  ranks  of  employer  of  labor  in  this  country,  and  per- 
haps in  any  other  country,  and  I  am  going  to  call  upon 
him,  as  he  is  a  man  in  touch,  has  been  in  touch,  and,  I 
have  no  doubt,  his  heart  is  still  in  touch  with  the  ranks 
of  labor  from  the  very  bottom  to  the  very  top,  and  with 
every  rank  of  the  employer  of  labor  from  the  smallest  to 
the  very  largest.  I  shall  call  upon  Mr.  Charles  M. 
Schwab,  the  President  of  the  United  States  Steel 
Corporation,  for  some  remarks. 

MR.  CHARLES  M.  SCHWAB:  Mr.  President  and  gen- 
tlemen— In  coming  here  this  morning  it  was  with  no  in- 
tention to  make  any  remarks.  My  attitude  upon  the 
labor  question  is  too  well  known  to  need  any  discussion 
here.  But  I  did  come  here,  as  Bishop  Potter  well  ex- 
presses it,  to  see  the  other  side  of  the  shield  if  I  can. 
Any  man  who  is  as  largely  and  as  deeply  interested  in 
labor  as  I  am  must  try  to  see  the  other  side  of  the  shield, 
to  see  the  question  of  labor  from  the  employees'  as  well 
as  the  employers'  point  of  view,  and  I  am  here  for  that 
purpose  this  morning.  I  am  here  with  a  mind  open  to 
conviction,  with  a  mind  to  receive  anything  that  is  fair, 
with  a  mind  to  do  that  which  is  fair  to  bring  about  har- 
mony between  capital  and  labor.  (Applause.) 

It  is  a  selfish  motive  in  a  way.  I  realize  that  the  pros- 
perity of  the  United  States  is  going  to  advance  more 
rapidly.  It  is  bound  to  advance  at  any  rate.  But  it  is 


INDUSTRIAL   CONCILIATION.  33 

going  to  advance  much  more  rapidly  when  this  happy 
solution  has  been  reached.  The  decadence  of  trade  in 
many  of  the  old  countries  is  due,  as  I  expressed  it  to  a 
large  body  of  English  labor  people  and  manufacturers  a 
short  time  ago,  primarily  of  all  things  to  the  attitude 
which  labor  has  taken  with  reference  to  capital.  It  is 
the  most  important  thing  with  reference  to  the  loss  of 
trade  in  Great  Britain  to-day.  I  think  all  economists 
writing  on  this  subject  will  agree  to  that.  I  don't  mean 
to  say  that  employers  have  not  been  arbitrary  and  radical. 
They  have.  On  the  other  hand,  I  think  that  labor  has 
been  just  as  arbitrary  and  radical.  And  it  is  to  remedy 
and  conciliate  these  differences  that  we  ought  to  get 
together. 

There  is  one  point  that  I  want  to  impress  upon  you. 
I  am  not  going  to  make  a  speech.  I  can  do  better 
probably  when  it  comes  to  giving  ideas  to  this  confer- 
ence rather  than  talk  about  theories.  But  there  is  one 
point  we  must  bear  in  mind, — that  labor  unions  will 
never  succeed,  as  trusts  never  succeeded,  that  attempt 
to  restrict  the  output  or  attempt  to  put  any  restriction 
upon  trade  in  general.  These  great  trusts  that  are 
formed  in  a  business  way  to  control  the  output  of  any 
commodity,  to  raise  its  price,  all  have  failed  and  all 
will  fail.  A  trust  will  succeed  where  there  are  motives 
of  consolidation  for  economy's  sake  and  for  regulating 
trade  generally.  And  the  laborer  must  take  a  similar 
position.  Labor  must  not  restrict  the  output.  That  is 
a  fundamental  principle.  And  I  am  sorry  to  say  that 
every  labor  organization  with  which  I  have  had  experi- 
ence in  the  past  has  had  as  its  foundation  the  restriction 
of  the  output.  It  is  that  principle  which  is  putting  Eng- 
lish commerce  and  English  trade  in  the  bad  position 


34  INDUSTRIAL    CONCILIATION. 

in  which  they  are  to-day;  and  we  owe  it  to  America's 
greatness  in  commerce  that  these  great  business  aggre- 
gations do  not  become  trusts  and  that  the  labor  unions 
do  not  become  a  trust  of  time  and  output. 

I  hope  that  this  conference  will  result  in  good.  I  have 
said  more  than  I  expected  to  say.  I  shall  speak  frankly 
whenever  I  do  speak.  I  am  opposed  to  labor  organiza- 
tion as  it  is  to-day  organized.  I  am  sorry  I  did  not  have 
Mr.  Phillips  and  such  gentlemen  to  deal  with.  I  think 
that  only  good  will  come  from  a  frank  and  naked  discus- 
sion of  the  truth  and  therefore  I  give  you  these  views. 
I  should  not  be  opposed  to  organized  labor  if  organized 
on  correct  principles.  It  is  a  mistaken  idea  to  suppose 
that  manufacturers  are  opposed  to  labor  unions  per  se. 
They  are  opposed  to  them  as  they  do  exist,  not  with 
labor  organizations  who  keep  their  contracts,  not  with 
labor  organizations  who  will  not  restrict  the  output,  not 
with  labor  organizations  who  have  the  good  of  the  trade 
they  represent  at  heart. 

I  have  spoken  frankly,  I  hope  not  offensively.  I  come 
here  to  be  convinced  of  anything  that  will  result  to  the 
good  of  the  workmen  and  their  employers,  because  their 
fortunes  and  their  prosperity  are  mutual  and  must  stand 
together.  (Applause.) 

MR.  STRAUS:  I  am  sure  we  are  all  thankful  for  the 
frankness  of  Mr.  Schwab.  I  can  say  that  he,  like  all  the 
other  speakers  here  to-day,  has  spoken  upon  the  spur  of 
the  moment  and  I  trust  that  he  will  be  with  us  through- 
out these  deliberations, because  we  want  his  guidance  and 
his  wisdom  as  we  want  the  guidance  and  the  wisdom  of 
the  great  leaders  on  the  other  side. 

I  shall  now  call  upon  a  gentleman  who  has  come  in 


INDUSTRIAL    CONCILIATION.  35 

touch  with  labor  in  another  field.  His  field  has  been 
devoted  to  the  guidance  and  care  of  the  children  of 
laborers,  the  sons  and  the  daughters  of  laborers  in  the 
crowded  districts  of  our  city,  and  his  name  is  known  to 
you  by  his  works.  I  call  upon  Mr.  James  B.  Reynolds, 
the  head-worker  of  the  University  Settlement  of  this 
city. 

MR.  JAMES  B.  REYNOLDS:  Mr.  Chairman  and  gentle- 
men— Senator  Hanna,  in  his  remarks,  stated  that  he 
became  convinced  of  the  value  of  labor  organizations 
through  his  experience  with  a  strong  labor  organization. 
I  first  became  convinced  of  the  value  of  trade-unions 
through  my  contact  with  a  weak  organization.  This 
weakness  taught  me  to  see  how  many  of  the  misfortunes 
of  its  members  might  be  overcome  if  the  organization 
were  stronger.  I  have  since  come  to  test  the  intel- 
ligence of  a  trade  by  seeing  whether  the  workmen  in  that 
trade  were  well  and  strongly  organized  or  not.  If  they 
were  strongly  organized,  the  workmen  were  able  and 
usually  disposed  to  keep  their  contracts,  as  they  would 
not  if  the  organization  were  weak.  In  other  words,  the 
strong  organization  is  not  only  the  organization  which 
contributes  most  to  its  members,  but  it  is  the  one  with 
which  the  employer  can  most  advantageously  deal.  The 
strike  is  usually  the  sign  of  a  weak  organization.  Strong 
organizations  attain  their  ends  by  the  pressure  of  their 
strength  and  the  respect  which  that  strength  commands 
from  their  opponents.  It  enables  them  to  meet  their 
opponents  on  equal  terms,  and  their  own  desire  not  to 
injure  their  prestige  or  deplete  their  carefully  accumu- 
lated resources  makes  such  an  organization  conservative 
and  reasonable. 

It  has  been  stated  this  morning  that  misunderstandings 


36  INDUSTRIAL   CONCILIATION. 

account  for  most  of  the  difficulties  which  provoke  labor 
disputes.  I  believe  this  statement  to  be  true. 

The  most  fruitful  cause  of  misunderstandings  is  sepa- 
ration. If  the  right  parties  could  come  together  at  the 
right  time,  nine  out  of  ten  strikes  would  be  averted.  I 
understand  that  the  object  of  this  organization  is  to  bring 
the  right  parties  together  at  the  right  time.  The  right 
time  for  us  is  the  time  preceding  the  acute  difficulties. 
The  success  of  our  efforts  must  depend  upon  our  wisdom 
in  anticipating  the  acute  stage  of  the  difficulties  which 
we  attempt  to  adjust. 

One  position  occupied  by  laboring  men  is,  in  my  mind, 
strangely  misunderstood  by  employers  as  a  class.  I  called 
once  upon  one  of  the  largest  employers  of  this  city,  and 
he  said  to  me,  "No  one  needs  to  come  to  see  me  about 
my  men.  I  am  always  ready  to  see  my  men  myself."  I 
asked  him  to  whom  a  complaint  presented  by  one  of  his 
men  would  be  referred  for  investigation.  He  replied, 
"  To  the  manager  of  the  division  in  which  the  complain- 
ant labors."  I  said,  "Is  not  the  manager  the  immediate 
superintendent  of  that  employee,  and  would  it  not  be  a 
criticism  of  the  manager  if  you  were  to  sustain  the  com- 
plaint ?  "  He  replied  that  it  would.  I  then  said,  "Can 
you  not  see  that  it  is  not  wise  for  the  man  to  complain 
to  you  of  his  immediate  superior,  with  whom  it  is  neces- 
sary for  him  to  keep  on  good  terms  ?  You  may  treat  his 
complaint  favorably  and  remedy  his  misfortune,  but  six 
months  later  you  will  not  understand  why  your  manager 
will  say  to  you  that  this  man  is  a  troublesome  fellow  and 
that  you  had  better  get  rid  of  him,  but  the  laborer  knows 
what  will  happen  in  such  a  case  and  will  not  if  he  can 
help  it  plan  for  his  discharge  by  offending  his  immediate 
supervisor. ' ' 


INDUSTRIAL  CONCILIATION.  37 

It  is  a  curious  fact  that  while  labor,  realizing  its  needs, 
has  organized  and  secured  its  regular  representatives, 
capital  has  not  yet  met  labor  with  proper  representatives. 
Capital  needs  organization  as  much  as  labor.  In  the 
garment-making  trade,  with  which  I  am  somewhat 
familiar,  the  exciting  cause  of  labor  difficulties,  and  one 
of  the  most  frequent  obstacles  in  the  settlement  of  such 
difficulties,  is  the  lack  of  organization  of  the  employers. 
The  greatest  need  of  capital  therefore,  in  my  opinion,  if 
it  be  seeking  to  promote  industrial  peace,  is,  first,  organi- 
zation, and,  second,  the  procurement  of  proper  represen- 
tatives. I  suppose  that  capital  would  object  to  having  a 
representative  who  might  be  called  a  "walking  delegate," 
but  if  it  were  to  have  a  representative  graced  by  the  title 
of  adjuster,  whose  business  it  should  be  to  "scent  danger 
from  afar,"  know  when  to  recommend  just  concessions, 
and  how  to  demonstrate  the  impossibility  of  other  con- 
cessions to  the  satisfaction  of  reasonable  representatives 
of  labor,  an  immense  contribution  would  be  made  to 
industrial  peace. 

The  development  of  the  wise  and  just  adjuster  then  is 
my  final  suggestion  for  the  consideration  of  this  gathering. 

MR.  STRAUS:  I  will  call  upon  one  more  gentleman 
before  we  adjourn  our  session  of  to-day,  and  I  wish  to 
repeat  that  when  we  do  adjourn  we  adjourn  to  half-past 
ten  o'clock  to-morrow  morning,  and  I  wish  to  say  that  we 
propose  to  effect  a  practical  working  machinery  for  pro- 
moting some  of  the  objects  spoken  of  here  to-day.  I  call 
upon  Mr.  Marcus  M.  Marks,  President  of  the  National 
Clothiers'  Association. 

MR.  MARCUS  M.  MARKS:  Mr.  Chairman  and  gentle- 
men— The  noble  sentiments  that  have  been  expressed 


38  INDUSTRIAL   CONCILIATION. 

to-day  are  certainly  encouraging  as  a  basis  for  tangible 
work  to  be  accomplished  later  by  active  committees.  In 
themselves  these  generalities,  noble  though  they  may  be, 
accomplish  little  beyond  providing  an  atmosphere  for  the 
proper  development  of  practical  effort.  Theoretically, 
our  problem  is  solved  before  we  begin  to  consider  it. 
There  is  no  question  at  all  that  labor  and  capital  mean 
well  toward  each  other.  The  general  sentiment  among 
manufacturers  is  that  their  laboring  men  should  live  in 
a  proper  way,  have  good  wages  and  reasonably  short 
hours,  for  their  own  sakes  and  for  their  employers'  best 
interests.  On  the  other  hand,  I  feel  sure  that  most 
laboring  men  mean  to  serve  their  employers  as  well  as 
they  can  for  the  best  interests  of  the  trade.  But  mis- 
understandings bring  about  the  conflict. 

If  the  shield  is  gold  on  one  side  as  viewed  by  the  em- 
ployer, and  silver  on  the  other  side  as  viewed  by  the 
employee,  it  should  be  the  province  of  this  convention 
to  appoint  an  executive  committee  so  broad  that  it  can 
see  both  sides  of  the  shield  clearly  and  fairly  and 
harmonize  the  points  of  view.  For  the  difference  is 
principally  imaginary  and  depends  upon  the  color  of  the 
glass  one  looks  through.  What  is  good  for  the  employee 
is  good  for  the  employer,  and  vice  versa.  However,  the 
limitation  of  what  a  good  bright  workman  should  do  in 
the  allotted  working  hours  of  a  day  by  a  rule  which 
brings  him  down  to  the  level  of  the  slow  or  even  the 
average  workman,  does  harm  in  both  directions.  It 
keeps  the  superior  workman  from  developing  into  an 
employer,  and  puts  a  damper  on  his  proper  ambition. 
We  should  encourage  the  best  among  employees  to  raise 
themselves  from  the  ranks  and  become  employers  them- 
selves. (Applause.) 


INDUSTRIAL   CONCILIATION.  39 

One  of  the  speakers  said  that  the  labor  problem  must 
be  solved  at  once,  and  once  for  all.  I  maintain  that  it 
never  will  be  solved,  and  never  should  be  solved,  except 
by  evolution.  There  should  always  be  the  hope  for 
better  things  for  the  workman,  his  constant  improvement 
and  elevation.  It  will  be  the  work  of  a  lifetime  of  Sena- 
tor Hanna  and  his  associates,  by  keeping  in  touch  with 
labor  and  capital,  to  endeavor  to  harmonize  differences, 
and  viewing  the  situation  without  prejudice,  to  point  out 
the  fair  and  the  right.  It  will  require  coolness,  courage, 
and  patience.  (Applause.) 

MR.  STRAUS:  Gentlemen,  I  thank  you  for  your  at- 
tendance this  morning,  and  bespeak  your  further  attend- 
ance. The  session  of  this  morning  is  adjourned. 

CONTINUED  MEETING,  TUESDAY,  DECEMBER  17,  1901, 
AT  10.30  A.M. 

MR.  STRAUS:  Gentlemen  of  the  conference,  or,  to 
borrow  a  phrase  from  a  simile  of  the  eloquent  address 
of  Bishop  Potter  of  yesterday,  may  I  say,  knights 
of  the  gold  and  knights  of  the  silver  shield,  may  the 
knights  of  each  side  see  the  other  side.  I  think  I 
cannot  begin  this  second  session  of  this  conference  with 
a  better  omen  or  with  better  ideas  than  are  contained  in 
the  few  words  taken  from  the  message  of  President 
Roosevelt,  which  I  will  now  read:  "When  all  is  said  and 
done,  the  power  of  brotherhood  remains  as  the  indis- 
pensable prerequisite  to  success  in  the  kind  of  national 
life  for  which  we  strive." 

I  shall  not  detain  you  with  any  remarks  of  my  own  be- 
cause there  are  men  here  who  are  in  touch  with  the  great 
problems  that  we  have  before  us  and  who  will  speak  not 


40  INDUSTRIAL   CONCILIATION. 

only  from  knowledge  but  from  an  intimate  experience. 
I  shall  have  the  pleasure  of  calling  upon  a  gentleman 
who  has  made  a  careful  study  under  the  supervision  of 
the  Government  of  the  United  States  of  these  problems, 
a  man  who  is  known  to  you  by  his  excellent  work  in  that 
field.  I  shall  call  upon  Mr.  E.  D.  Durand,  Secretary  of 
the  United  States  Industrial  Commission. 

MR.  E.  D.  DURAND:  Gentlemen — I  cannot  claim 
exactly  to  be  a  knight  of  the  golden  shield,  since  un- 
fortunately I  am  not  a  capitalist,  and  I  do  not  know  but 
some  of  my  good  friends  of  the  American  Federation  of 
Labor  might  deny  to  me  the  right  even  to  be  a  knight 
of  the  silver  shield,  claiming  that  I  am  not  a  working 
man.  But  I  am  interested  in  these  problems  which  the 
working  men  and  the  capitalists,  the  employers  and  the 
employees,  have  to  face,  and  I  am  connected  with  a 
body,  the  United  States  Industrial  Commission,  which 
has  taken  a  profound  interest  in  this  subject  of  the 
means  of  promoting  industrial  peace,  and  has  given  as 
much  attention  to  it  in  its  various  investigations  as  to 
almost  any  other  single  subject. 

Some  of  the  publications  of  the  Commission  may  be 
of  interest  to  those  who  are  anxious  to  know  further  de- 
tails with  reference  to  existing  methods  of  adjusting  the 
relations  between  employers  and  employees.  The  Com- 
mission has  had  before  it  representatives  of  a  great  many 
of  the  labor  organizations  and  the  organizations  of  capital 
which  have  been  most  successful  in  their  dealings  with 
one  another  and  in  preventing  strikes  and  lockouts.  It 
has  also  collected  in  one  volume  the  published  material 
of  these  various  organizations  relating  to  their  means  of 
securing  peaceful  relations.  Copies  of  many  industrial 
agreements  fixing  the  conditions  of  labor  have  been 


INDUSTRIAL   CONCILIATION.  41 

obtained,  and  a  very  large  amount  of  information  has 
been  published.1 

Two  or  three  general  conclusions  seem  to  grow  out  of 
the  facts  thus  collected,  as  to  the  best  methods  which  can 
be  employed  for  adjusting  the  relations  of  employers  and 
employees.  I  think  one  of  the  most  fundamental  things 
which  can  be  borne  in  mind  is  a  recognition  of  the  dis- 
tinction between  the  two  great  classes  of  disputes  or 
differences  which  have  to  be  adjusted.  The  one  class 
has  to  do  with  general  matters,  the  other  with  specific 
and  less  important  matters.  The  one  has  to  do  with  the 
general  terms  of  the  labor  contract,  with  the  rate  of 
wages,  the  hours,  the  general  conditions  under  which 
the  work  shall  be  performed.  Disputes  of  the  other 
class  are  specific  and  temporary;  they  are  largely  differ- 
ences of  interpretation  as  to  the  labor  contract;  they 
often  arise  from  misunderstandings  merely. 

Now,  if  you  recognize  these  distinct  classes  of  differ- 
ences, you  can  readily  see  that  in  many  cases  a  distinct 
machinery  should  be  provided  for  settling  each  class. 
And  those  systems  of  "arbitration,"  if  you  please  to  use 
that  word  in  a  very  broad  sense,  which  are  most  success- 
ful in  the  United  States  are  those  which  do  recognize 
this  difference  between  the  classes  of  disputes. 

The  first  class  of  disputes,  the  general  matters,  are 
proper  subjects  for  negotiation  directly  between  indi- 
vidual employers,  or  organizations  of  employers,  and 
organizations  of  employees;  and,  in  general,  for  such 
direct  negotiation  only.  They  are  proper  subjects  for 
what  some  people  have  termed  "  collective  bargaining." 
Few  who  have  had  experience  or  who  have  studied 
the  subject  believe  that,  unless  in  the  most  extreme 
1  Reports  of  the  Industrial  Commission,  vol.  xvii. 


42  INDUSTRIAL   CONCILIATION. 

instances,  these  general  questions  should  be  decided  by 
persons  outside  of  the  trade,  and  unfamiliar  with  its  con- 
ditions. They  cannot  justly  be  decided  by  the  arbitrary 
decree  of  the  employer,  nor  should  labor  organizations 
dictate  without  consulting  the  employer's  interest.  The 
general  labor  contract  is  a  thing  which  both  sides  must 
agree  upon  as  nearly  as  possible.  Just  as  two  corpora- 
tions which  have  business  matters  to  settle  come  together 
and  strike  a  bargain,  so  in  some  of  the  leading  industries 
of  the  country,  the  great  employer  or  organization  of 
employers  and  the  representatives  of  the  employees  come 
together,  usually  once  each  year,  and  strike  a  bargain. 
They  negotiate,  they  meet  one  another  face  to  face  and 
thrash  out  a  compromise.  I  think  no  phrase  is  more 
accurate  to  describe  this  practice  than  "collective  bar- 
gaining." The  word  "conciliate"  is  often  used  and  is 
perhaps  fairly  satisfactory.  Certainly  it  is  not  arbitration 
in  the  strict  sense.  One  often  hears  employers  and  em- 
ployees alike  say  they  are  opposed  to  arbitration.  When 
the  statement  is  sounded  it  is  usually  found  that  they  are 
merely  opposed  to  calling  in  any  one  not  directly  con- 
cerned, perhaps  entirely  outside  of  the  trade,  to  decide 
the  question,  and  they  are  not  opposed  to  negotiations 
directly  between  the  interested  parties.  Sometimes  in  a 
particular  strike  you  hear  there  is  a  refusal  to  arbitrate. 
That  means  generally  a  refusal  to  call  in  somebody  from 
the  outside.  A  refusal  on  the  part  of  fair-minded  em- 
ployers and  employees  to  get  together  and  negotiate  is 
much  less  common. 

Collective  bargaining  then,  rather  than  arbitration 
strictly,  is  the  method  by  which  ordinarily  the  general 
questions  relating  to  the  conditions  of  labor  are  most 
satisfactorily  settled.  By  this  method  employers  and 


INDUSTRIAL   CONCILIATION.  43 

employees  in  a  great  many  trades  in  the  United  States  suc- 
ceed in  reaching  from  year  to  year,  or  from  time  to  time, 
agreements  concerning  the  conditions  of  labor.  Peace- 
ful, businesslike  negotiation,  without  strikes,  without 
lockouts,  without  the  immense  losses  which  often  result 
from  strikes  and  lockouts, — that  is  the  thing  in  a  nutshell. 

Let  a  number  of  representatives  of  the  two  parties  in 
interest  get  together,  let  them  discuss  matters  frankly  and 
in  a  friendly  manner,  and  after  a  time — it  may  be  per- 
haps quite  a  long  time — a  general  agreement  is  almost 
sure  to  be  reached.  Each  side  comes  to  understand  and 
respect  the  other;  and  each  hesitates  to  encounter  the 
losses  of  cessation  of  employment  by  being  too  insistent 
on  its  demands. 

From  the  fact  that  these  general  questions  are  best 
settled  by  a  system  of  bargaining,  and  not  by  a  system  of 
judicial  decision  and  arbitration,  it  follows  that  a  suc- 
cessful result  can  be  brought  about,  usually,  only  where 
you  have  ultimately  a  practically  unanimous  agreement 
of  all  representatives  of  both  sides  as  the  result  of  nego- 
tiation. It  will  not  do  to  get  together  a  half-dozen  em- 
ployers and  a  half-dozen  employees,  and  let  them  decide 
by  bare  majority  vote  what  shall  be  the  conditions  of 
labor  in  an  entire  trade;  so  that,  for  example,  if  one  of 
the  workmen  happens  to  be  over-persuaded  to  join  the 
side  of  the  employers,  he  can  cast  the  die  and  determine 
the  wages  and  hours  of  perhaps  thousands  of  his  fellows 
for  a  year.  As  a  matter  of  practice  that  method  will  not 
work.  The  two  groups  representing  capital  and  labor 
ought  rather  to  debate,  discuss,  work  over  the  terms, 
thresh  out  the  question,  until  they  reach  a  unanimous 
agreement;  and  that,  as  a  matter  of  fact,  is  the  ordinary 
practice  in  this  regard  in  the  United  States. 


44  INDUSTRIAL  CONCILIATION. 

The  proper  scope  of  a  system  of  collective  bargaining, 
its  territorial  extent,  depends  largely  on  the  nature  of 
the  trade  concerned.  Obviously  it  is  desirable  that,  so 
far  as  possible,  the  conditions  of  labor  shall  be  made 
approximately  uniform  over  an  entire  competitive  field. 
\  If  the  employers  of  one  section  of  the  country  are  com- 
peting in  a  common  market  with  the  employers  of  another 
section,  it  is  desirable  that  the  employers  and  the  em- 
ployees of  the  two  sections  should  meet  with  one  another 
and  adjust  the  conditions  of  the  labor  contract  on  an 
equitable  basis;  otherwise  the  employers  in  one  locality 
will  perhaps  be  tempted  to  cut  wages,  or  otherwise  to 
make  the  conditions  of  labor  worse,  in  order  to  meet  the 
competition  or  the  fear  of  competition  from  another  sec- 
tion. |  The  wider  the  field  of  competition,  the  wider 
should  be  the  system  of  collective  bargaining.  We  find, 
therefore,  in  a  number  of  trades  in  the  United  States, 
national  organizations  of  employers  and  national  organi- 
zations of  employees  which  enter  into  wide-reaching 
agreements,  fixing  the  most  important  conditions  of 
labor,  but  leaving  the  details  to  be  settled  locally.  On 
the  other  hand,  where,  as  in  the  building  trades,  com- 
petition is  largely  confined  to  a  single  city  or  small  dis- 
trict, local  agreements  are  more  customary,  and  are  found 
to  work  satisfactorily. 

It  is  obvious  that  to  have  success  in  this  system  of  col- 
lective bargaining  there  must  be  organization, — organiza- 
tion on  both  sides.  The  necessity  of  organization  to  give 
the  working  men  any  degree  of  strength  in  their  dealings 
with  employers  need  not  be  emphasized  before  such  a 
body  as  this.  There  are  many  representatives  of  em- 
ployers, moreover,  who  will  insist  that  one  of  the  chief 
difficulties  in  the  past  in  bringing  about  peaceful  settle- 


INDUSTRIAL   CONCILIATION.  45 

ments  has  been  the  lack  of  organized  collective  action  on 
the  part  of  the  employers.  They  have  been  slower  to 
organize  than  working  men.  They  have  often  been  dis- 
posed to  compete  with  one  another,  if  need  be,  by 
crowding  the  workers  more  closely,  rather  than  to  agree 
in  adjusting  the  conditions  of  labor  on  an  equal  basis. 
^Strong  organization,  then,  of  both  employers  and  em- 
ployees is  highly  desirable,  and  becomes  absolutely 
essential  if  the  system  of  collective  bargaining  is  to  be 
spread  over  a  large  territory.  »  In  the  absence  of  such 
organization,  thoroughly  representative  of  the  trade,  the 
agreements  reached  will  not  truly  represent  the  great 
body  of  employers  and  employees,  and  competition  from 
outside  will  threaten  the  very  existence  of  the  system. 
Moreover,  without  strong  organization  agreements  will 
not  be  effectively  carried  out,  nor  be  made  binding  upon 
even  the  employers  and  employees  who  are  parties  to 
them. 

One  other  thought  grows  directly  out  of  a  recognition 
of  the  essential  nature  of  the  collective  bargaining  pro- 
cess. To  insure  the  best  results,  it  is  desirable  to  have  a 
comparatively  large  representation  of  the  parties  at 
interest  in  driving  the  bargain,  provided  of  course  the 
number  of  employers  and  employees  concerned  is  large. 
There  have  been  cases  where  an  attempt  was  made  to 
reach  an  agreement,  affecting  scores  of  establishments 
and  thousands  of  men,  by  negotiations  between  two  or 
three  officers  on  the  one  side  and  the  other.  But  such 
attempts  seldom  succeed  very  well.  Large  representa- 
tion of  the  parties  is  needed  to  bring  out  the  real  desires, 
the  real  interests,  of  the  great  mass  of  employers  and 
employees  who  are  to  be  so  profoundly  affected  by  the 
agreement.  Moreover,  if  you  have  a  small  number  of 


46  INDUSTRIAL   CONCILIATION. 

conferees  only,  the  reasons  why  the  various  terms  of  the 
agreement  have  been  reached  are  not  understood  gener- 
ally by  all  concerned,  and  dissatisfaction  with  them  is 
likely  to  arise.  Great  stress  was  laid  yesterday  on  the 
thought  that  a  spirit  of  brotherhood  is  necessary,  and 
also  familiarity  with  the  conditions  on  the  one  side  and 
the  other,  in  order  to  promote  industrial  peace.  Surely 
nothing  could  be  more  helpful  in  promoting  that  brother- 
hood and  that  familiarity  than  to  have  a  considerable 
number  of  employers  and  employees  come  together  from 
time  to  time  and  negotiate  as  to  the  terms  of  the  labor 
contract.  Details  of  the  industrial  agreement  may  be 
referred  to  smaller  committees,  but  the  general  relations 
will  certainly  be  more  peaceful  if  meetings  of  considerable 
size  ultimately  decide  the  main  questions.  In  the  bitu- 
minous coal  industry  the  joint  interstate  conference 
consists  often  of  one  hundred  and  fifty  employers  and 
five  hundred  on  the  other  side,  with  a  smaller  "scale 
committee  "  which  reports  to  it.  After  meeting  a  num- 
ber of  days  the  delegates  reach  an  agreement  and 
sepai ate  with  a  great  deal  of  amity,  and  the  friendly  at- 
titude and  understanding  of  one  another's  position  which 
those  large  numbers  of  men  take  back  to  their  respective 
localities  does  very  much  to  prevent  violations  of  the 
agreement  and  local  disputes. 

One  word  with  reference  to  the  differences  of  the 
second  class  above  distinguished,  the  minor  disputes, 
which  in  many  cases  are  merely  misunderstandings 
that  could  have  been  removed  if  there  had  been  any 
machinery  for  the  employer  and  employee  to  get  together. 
Those  differences  ought  ordinarily  to  be  settled  by  a 
different  process  from  that  by  which  the  general  col- 
lective bargain  is  reached.  To  be  sure,  where  a  good 


INDUSTRIAL   CONCILIATION.  47 

system  of  industrial  agreements  exists,  the  minor  disputes 
are  far  less  likely  to  arise ;  but  they  will  arise  occasion- 
ally, and  when  they  do  there  ought  to  be  machinery 
established  and  ready  so  that  there  can  be  a  prompt  and 
peaceful  adjustment.  Such  local  shop  committees  as 
Mr.  Phillips  has  described  in  the  hatters'  trade  are  very 
valuable, certainly,  for  negotiation  between  the  individual 
employer  and  the  men  of  the  particular  shop.  To  give  any 
promise  of  success  in  settling  such  minor  difficulties,  the 
employer  must,  of  course,  be  prepared  to  meet  his  men 
frankly,  and  the  employees  must  be  ready  to  confer 
peaceably.  Then  there  may  be  local  committees  of 
organizations  of  employees,  and  of  organizations  of  em- 
ployers as  well,  representing  the  city  or  the  district. 
Joint  committees,  boards  of  arbitration  as  they  are 
usually  called,  are  especially  desirable,  and  should  pref- 
erably be  permanently  established.  To  these  boards 
can  be  appealed  differences  which  cannot  be  settled  by 
the  shop  committees.  Finally,  where  a  national  system 
of  collective  bargaining  exists,  there  may  well  be  joint 
arbitration  committees  representing  the  national  organi- 
zations. 

Arbitration  committees,  whether  local  or  national, 
are  often,  and  may  properly  enough  be,  empowered  to 
render  binding  decisions,  and,  if  need  be,  as  a  last  resort, 
to  call  in  some  one  outside  the  trade  to  decide  a  point  at 
issue.  This  is  arbitration  proper,  a  judicial  decision, 
essentially  different  from  bargaining.  But  in  general 
such  boards  will  not  have  to  render  authoritative  deci- 
sions nor  to  call  in  outside  umpires;  they  can  conciliate, 
mediate,  and  lead  the  parties  into  agreement  with  refer- 
ence to  these  minor  disputes.  In  fact,  usually,  if  there 
be  a  committee  of  the  working  men  which  is  regularly 


48  INDUSTRIAL    CONCILIATION. 

recognized  by  the  employer  in  a  particular  shop,  a  mere 
conciliation  directly  between  them  will  settle  the  matter 
in  the  first  instance. 

If  then  we  can  have  a  system  of  collective  bargaining, 
more  or  less  formal,  conducted  by  large  committees  or 
conferences  of  employers  and  employees,  supplemented 
by  a  system  of  conciliation  and  arbitration  as  to  the 
minor  disputes,  each  system  worked  out  in  proper  rela- 
tion to  the  conditions  of  the  trade,  we  shall  have  accom- 
plished a  great  deal  toward  promoting  industrial  peace. 
And  I  sincerely  hope  that  this  conference  may  result  in 
a  better  understanding  of  the  actual  methods  which  have 
been  heretofore  so  successfully  employed  in  many  of  the 
trades,  and  that  it  may  also  promote  a  spirit  of  harmony 
which  will  make  for  the  rapid  extension  of  these  prac- 
tices. 

MR.  STRAUS:  I  shall  now  have  the  pleasure  of  calling 
upon  the  representative,  the  chief  representative,  of  an 
industry  in  which  our  country  has  pre-eminently  excelled, 
an  industry  which  was  first  developed  here  and  in  which 
we  are  surpassing  perhaps  the  entire  world,  so  that  to-day 
on  the  banks  of  the  Nile,  in  the  ears  of  the  Sphinx,  is 
heard  the  sound  of  this  industry — I  mean  the  locomotive. 
I  shall  call  upon  the  gentleman  who  represents  a  section 
of  that  trade  as  the  Grand  Master  of  its  Brotherhood,  and 
who  represents  also  a  million  workers  in  that  sphere 
of  labor.  I  call  upon  Mr.  Frank  P.  Sargent,  Grand 
Master  of  the  Brotherhood  of  Locomotive  Firemen,  from 
Peoria,  111. 

MR.  FRANK  P.  SARGENT:  Mr.  Chairman  and  gentle- 
men of  the  conference — I  regret  that  it  was  not  my 
privilege  to  be  with  you  yesterday  and  listen  to  the  very 


INDUSTRIAL   CONCILIATION.  49 

able  addresses  that  were  made  by  the  representatives  of 
capital,  men  high  in  official  station,  and  those  who  have 
made  for  many  years  a  study  of  economics.  But  un- 
fortunately I  was  subject  to  the  elements,  confined  in 
the  Adirondacks,  and  unable  to  escape.  I  however  was 
privileged  last  night  after  my  arrival  to  read  the  extended 
report  given  by  the  press  of  New  York,  and  there  to  gather 
some  knowledge  of  the  doings  of  yesterday's  session. 

To  me  this  is  a  most  pleasant  occasion  when  repre- 
sentatives of  capital  and  of  toil  may  sit  down  together 
and  dispassionately  discuss  one  of  the  greatest  topics  that 
presents  itself  to-day  to  the  American  people.  I  believe 
that  in  this  meeting  every  one  is  privileged  to  express  his 
honest  convictions,  and  that  by  so  doing  he  will  not 
engender  any  ill-will,  but  rather  gain  respect,  because 
he  who  has  convictions  and  is  fearless  in  the  expression 
of  them  we  cannot  help  but  admire,  even  though  we  may 
disagree  with  him.  It  becomes  us,  if  in  opposition  to 
the  declaration  made,  to  try  by  logical  argument  to 
convince  our  opponent  of  the  error  of  his  judgment 
and  to  win  him  over  if  we  can.  Hence,  as  I  read  the 
report  of  yesterday's  session  and  learn  of  the  expression 
of  a  distinguished  representative  of  capital  who  passes 
some  severe  criticism  upon  the  present  methods  of  the 
organizations  of  labor,  I  do  not  lose  any  respect  for  the 
gentleman.  I  rather  admire  him  for  his  frankness.  It 
then  becomes  our  duty  in  speaking  of  labor  to  try  to 
convince  him  that  he  is  misinformed,  that  he  has  not 
drawn  the  correct  conclusions,  that  organized  labor  in  its 
many  ramifications  to-day  is  not  a  menace  to  capital,  is 
not  in  defiance  of  the  law,  but  rather  is  one  of  the  strong 
influences  that  is  at  work  to  maintain  one  of  the  grandest 
republics  the  world  ever  saw.  (Applause.) 

4 


5<D  INDUSTRIAL   CONCILIATION. 

Out  of  a  meeting  of  this  character  can  only  come  great 
good,  not  alone  to  the  man  who  toils  and  by  the  sweat  of 
his  brow  earns  a  livelihood  for  himself  and  his  little  ones, 
but  for  all  our  people  and  our  country's  welfare,  if  we  are 
true  to  ourselves  and  the  interests  we  hold  dear.  Hence, 
as  I  see  this  body  gathered  here  this  morning,  and 
as  I  recognize  in  this  throng  men  eminent,  influential, 
and  learned,  as  well  as  those  whose  daily  life  takes  them 
among  the  toilers  of  our  land,  who  live  as  they  live,  I 
cannot  help  but  believe  that  we  are  beginning  a  work 
here  that  will  prove  more  beneficial  to  the  interests  of  our 
country  than  any  work  that  has  ever  been  begun  in  all 
the  years  of  our  existence.  (Applause.)  Why  ?  Be- 
cause we  are  about  to  put  ourselves  in  a  position  to 
understand  each  other,  and  understand  each  other  aright. 
We  are  taking  down  the  barriers  that  have  seemingly 
existed  between  us,  and  we  are  privileged  to  touch 
elbows,  and  to  feel  the  thrill  of  brotherhood  as  it  passes 
from  mind  to  mind  and  hand  to  hand.  We  are  privileged 
to  learn  more  of  the  true  relations  which  should  exist  be- 
tween us,  and  by  virtue  of  these  associations,  the  people 
who  go  to  make  up  our  republic  must  of  necessity  be 
benefited.  The  trouble  has  been  in  the  past  that  labor 
and  capital  have  not  been  understood  and  their  relations 
have  not  been  properly  defined. 

Here  this  morning  in  my  presence  are  the  men  who 
control  capital.  Right  alongside  of  them  sit  the  men 
who  make  it,  create  it.  Without  the  hand  of  toil  there 
would  be  no  capital.  Its  creator  is  the  man  who  works 
at  the  pick,  at  the  scoop,  or  in  the  different  trades  of  our 
nation.  The  man  who  controls  it  after  it  is  thus  created 
may  be  classed  as  the  capitalist.  But  both  are  depend- 
ent upon  each  other.  I  care  not  how  much  wealth  a  man 


INDUSTRIAL    CONCILIATION.  51 

may  have,  I  care  not  what  his  influence  may  be,  unless 
he  has  means  to  use  that  wealth,  unless  that  capital 
which  he  has  in  his  control  can  be  put  into  circulation 
and  utilized,  what  benefit  is  it  to  him  ?  By  virtue  of  the 
fact  that  there  are  avenues  of  trade  through  which  that 
capital  may  circulate,  that  there  are  thousands  upon 
thousands  of  men  ready  to  use  their  hands  as  well  as 
their  brains  in  the  investment  of  that  capital,  in  the 
manufacturing  industries,  the  railroad  development,  and 
all  other  great  enterprises  of  which  we  are  so  proud,  his 
capital  becomes  a  benefit  to  him. 

Therefore,  I  maintain  that  the  true  relation  between 
the  man  who  works  with  his  hands  as  a  toiler  and  the 
man  who  manipulates  the  finances  is  evident  in  their 
dependency  one  upon  another.  The  distinguished 
gentleman  who  spoke  from  the  platform  yesterday,  con- 
trolling as  he  does  millions,  must  not  forget  the  fact  that 
were  it  not  for  the  hand  of  toil  at  the  furnaces  and  in 
the  mines  and  shops  and  mills  of  the  country,  he  would 
have  very  little  to  control  or  manipulate.  (Applause.) 
Those  things  should  not  be  forgotten.  Hence,  I  place 
a  high  estimate  on  this  convention,  because  it  gives 
opportunity  for  understandings. 

Organized  labor  in  this  country  is  no  new  introduc- 
tion, no  new  institution.  We  have  had  organized  labor 
for  many  years,  and  its  influences  have  been  seen  and 
felt.  I  am  but  a  novice  in  the  labor  movement,  but  my 
observations  have  convinced  me  that  there  are  organiza- 
tions of  labor  that  are  helpful,  beneficial,  and  should  be 
encouraged,  and,  thank  God,  they  are  encouraged  by 
some  of  the  broadest  and  most  liberal  men  that  this  coun- 
try has  to-day  in  charge  of  its  greatest  commercial 
industries.  I  can  speak  particularly  of  the  locomotive 


52  INDUSTRIAL   CONCILIATION. 

firemen  of  this  country,  who,  in  1873,  in  the  discharge 
of  their  duty  upon  the  locomotive,  earned  the  princely 
sum  of  thirty-two  dollars  a  month.  There  was  no  organ- 
ization then.  A  fireman  was  privileged  to  work  at  the 
wages  which  were  specified,  so  long  as  he  desired  to  do  so, 
or  so  long  as  his  employer  would  give  him  the  opportunity, 
but  so  far  as  having  any  privileges  or  rights  such  as  he 
enjoys  to-day,  he  did  not.  Organization  came,  not  for 
the  purpose  of  presuming  to  take  control  of  the  industry 
which  he  represented,  but  for  the  purpose  of  bringing 
into  a  solid  community  the  interests  represented,  teach- 
ing locomotive  firemen  first  that  they  should  respect 
themselves,  that  they  should  be  honest,  upright,  and 
reliable.  When  that  fact  had  been  established  and 
the  organization  which  represented  their  interests  had 
shown  to  their  employers  that  their  purposes  were  sin- 
cere, that  there  was  no  hypocrisy  hidden  beneath  their 
organization,  but  that  its  aim  was  to  elevate  themselves, 
to  protect  their  families,  and  to  advance  their  wages,  they 
did  not  hesitate  to  grant  recognition,  and  there  was  no 
hesitancy  in  seeking  it.  To-day  the  forty  thousand  loco- 
motive firemen  of  this  country  who  owe  allegiance  to  the 
Brotherhood  which  represents  their  interests  are  enjoy- 
ing a  salary  of  more  than  double  what  they  did  in  1873; 
and  I  can  point  you  to  the  personnel  of  the  men  of  that 
calling  the  country  over,  with  the  responsible  duties 
which  they  honorably  discharge,  and  you  can  see  for 
yourselves  the  influence  of  organization  in  that  branch 
of  labor. 

To-day  the  locomotive  firemen  maintain  the  same 
principles  of  organization  that  they  did  when  they  first 
laid  its  foundation.  They  believe  in  giving  a  fair  day's 
work  for  a  fair  day's  pay,  in  discharging  every  re- 


INDUSTRIAL   CONCILIATION.  53 

sponsibility  that  rests  upon  them,  with  an  eye  single  to 
the  success  of  their  employer  and  themselves,  believing 
that  when  they  have  done  this  they  can  stand  on  their 
feet,  hold  their  heads  erect,  and  consider  themselves  the 
peers  of  any  man ;  and  so  they  are  if  they  are  honest. 
(Applause.)  They  have  no  hesitancy  in  believing  and 
declaring  that  there  are  great  responsibilities  resting 
upon  the  man  who  shovels  the  coal.  They  also  realize 
that  their  employer  has  certain  rights  which  they  are 
bound  to  respect.  Hence  years  ago  they  adopted  the 
policy  of  sitting  down  and  reasoning  with  their  employer 
upon  all  matters  that  affected  their  interests.  By  virtue 
of  that  policy,  upon  nearly  every  railroad  of  the 
American  continent  to-day  are  mutual  agreements  exist- 
ing between  the  firemen  and  the  operating  officers  of  the 
railroad  company  wherein  their  wages  are  specified, 
the  number  of  hours  which  they  shall  be  employed  are 
designated,  their  rights  and  privileges  are  set  forth;  and 
above  all  else  they  hold  sacred  these  agreements,  and 
they  believe  that  it  is  their  bounden  duty  at  all  times  to 
keep  them  in  good  faith  with  their  employer.  (Applause. ) 
Such  has  been  the  policy  of  the  locomotive  firemen, 
and  such  it  is  to-day.  We  realize,  however,  that  in  an 
organization  like  ours  mistakes  are  sometimes  made. 
Men  sometimes  become  unreasonable  in  their  demands. 
They  imagine  that  there  are  grievances  hard  to  bear, 
which,  if  they  were  permitted  to  exercise  their  own 
privileges,  their  own  desires,  might  lead  them  into 
serious  difficulty.  It  is  the  purpose  of  the  Brotherhood 
to  so  educate  its  members  that  when  a  man  feels  that  he 
has  a  grievance  against  his  employer  he  shall  first  en- 
deavor to  adjust  his  grievance  with  the  officers  in  im- 
mediate charge.  If  he  fails,  he  then  calls  upon  his 


54  INDUSTRIAL  CONCILIATION. 

organization,  and  it  becomes  the  duty  of  the  committee, 
which  exists  on  each  system  of  railroads  where  the  organ- 
ization exerts  its  influence,  to  go  to  the  operating  officer 
and  there  endeavor,  not  by  threat,  not  by  demand,  but 
by  a  conciliatory  policy,  to  try  to  convince  the  gentleman 
that  an  injustice  has  been  done,  and  by  the  influence  of 
the  organization  to  bring  about  such  an  understanding 
that  the  fireman's  interests  may  be  protected  and  the 
organization  thereby  advanced  in  the  estimation  of  the 
managing  officer  of  the  corporation.  The  Brotherhood 
holds  in  reserve,  as  every  organization  of  labor  should,  the 
right  to  resist  oppression,  to  crush  wrong,  when  reason 
will  not  prevail.  The  Brotherhood  of  Locomotive  Fire- 
men does  not  want  it  understood  that  it  always  bends  the 
knee  and  bows  the  head  to  the  edict  of  the  one  man  in 
authority.  Never.  It  has  a  certain  amount  of  inde- 
pendence which  at  the  proper  time  and  place  it  tries  to 
assert.  But  the  history  of  the  labor  movement,  and 
especially  the  history  of  the  Brotherhood  of  Locomotive 
Firemen,  will  show  for  itself  how  many  times  it  has  been 
necessary  to  assert  that  independence.  We  have  found 
in  dealing  with  the  representatives  of  capital  on  rail- 
roads, that  if  you  go  to  the  man  in  the  right  way,  not 
with  a  club  sticking  out  of  your  pocket,  or  with  a  chip 
on  your  shoulder,  indicating  that  you  would  like  to 
have  it  knocked  off  first,  and  if  you  approach  him  in  a 
businesslike  way,  giving  him  to  understand  what  you  have 
to  present,  and  that  you  know  the  merits  of  your  case, 
that  you  are  not  presuming  to  induce  him  to  do  some- 
thing that  is  radically  wrong,  that  you  have  come  to  pre- 
sent to  him  a  proposition  backed  up  by  reason,  by  facts, 
by  figures,  and  by  virtue  of  the  strong  influence  which 
you  command,  you  are  going  to  win  him  over  to  your 


INDUSTRIAL   CONCILIATION.  55 

way  of  thinking,  or  at  least  you  are  going  to  come  some- 
where near  reaching  conclusions  that  will  be  satisfactory. 

That  is  the  policy  which  locomotive  firemen  pursue. 
We  believe  to-day  that  if  the  representatives  of  capital, 
I  don't  care  what  position  they  may  occupy  or  how 
many  millions  they  have  at  their  command,  will  adopt 
the  same  policy  that  prevails  here  this  morning,  which 
is  so  well  represented  in  the  minds  and  thoughts  of  the 
men  assembled,  when  these  questions  arise  that  affect 
the  interests  of  both  labor  and  capital;  that  if,  instead 
of  standing  at  a  distance  and  calling  one  another  names, 
they  come  together  and  sit  down  as  you  gentlemen  have 
sat  down  here  to  hear  both  sides  of  the  question  and 
to  form  your  conclusions  upon  facts  and  good  logical 
argument,  industrial  peace  will  come  quickly.  (Ap- 
plause.) 

I  have  just  returned  from  Montreal.  The  Canadian 
Pacific  Railway  employs  quite  a  number  of  firemen. 
Wages  in  Canada  are  not  quite  so  high  as  they  are  in  the 
United  States.  Although  I  have  listened  to  the  argu- 
ments presented  by  the  gentleman  from  the  Dominion 
making  comparisons  upon  our  condition  over  here,  he 
did  n't  win  me  over  to  the  idea  that  I  would  be  better 
off  if  I  lived  in  Canada,  with  all  respect  to  Canada  and 
its  great  industries.  When  we  arrived  in  Montreal  we 
found  the  representatives  of  our  organization,  the  com- 
mittee in  the  employ  of  the  Canadian  Pacific,  and  the 
officers,  at  a  standstill.  Firemen  were  asking  for  more 
pay.  That  was  our  business  (laughter) ;  and  it  is  going 
to  continue  to  be  our  business  as  long  as  locomotives 
grow  larger,  trains  grow  heavier,  and  the  hardships  put 
upon  the  firemen  are  greater.  (Laughter.)  Of  course, 
being  over  there  on  that  business,  I  did  not  hesitate  to 


56  INDUSTRIAL   CONCILIATION. 

use  influence  to  have  the  Canadian  Pacific  unlock  its 
treasury  and  dispense  a  little  of  its  surplus  earnings. 
The  conference  lasted  from  Wednesday  morning  until 
Saturday  night.  At  the  close  of  the  conference  on 
Saturday  night  an  agreement  was  signed  wherein  the 
firemen  were  advanced  nearly  ten  cents  a  day  on  every 
locomotive  on  the  division  that  the  committee  was  rep- 
resenting. (Applause.)  But  what  to  my  mind  was  more 
valuable  than  the  ten  cents  is  the  fact  that  when  the 
conference  concluded,  the  men  on  the  one  side  and  the 
representatives  of  the  company  on  the  other  were  well  sat- 
isfied. There  was  good  feeling  prevailing,  and  everybody 
has  gone  to  take  up  his  scoop  with  renewed  energy,  and 
wait  for  the  time  to  go  and  get  some  more.  (Laughter.) 
I  Now,  it  took  four  days  to  bring  that  about.  It  re- 
quired an  argument.  In  the  first  place,  the  officers  of 
the  Canadian  Pacific  began  to  tell  us  that  firemen  were 
not  entitled  to  any  more  pay.  Why  ?  Because  they 
were  paying  the  going  wages  of  the  market.  I  had  to 
admit  it.  The  going  wages  of  the  market,  however, 
were  not  high  enough  to  recompense  the  men  who  did 
the  work  and  bought  the  beefsteak  at  the  increased  prices 
in  Canada,  as  living  has  gone  up  in  Canada  as  well  as  in 
our  own  progressive  country.  We  set  about  to  convince 
the  gentlemen  that  the  firemen  were  entitled  to  more 
pay  because  they  were  doing  more  work  and  by  virtue  of 
the  increased  labor  should  have  more  for  their  services. 
They  got  the  ten  cents.  What  conclusion  is  to  be 
reached  ?  This.  That  when  you  go  to  the  representa- 
tives of  capital  and  present  a  logical  argument,  putting 
forth  the  facts,  not  with  a  club,  or  with  a  threat  of  your 
influence,  although  you  have  got  it,  but  endeavor  to 
convince  him  who  represents  the  corporation  on  the  one 


INDUSTRIAL    CONCILIATION.  57 

side  that  the  men  in  his  employ  by  faithful  service  are 
earning  more  than  they  are  receiving,  very  frequently 
you  will  succeed  in  adding  to  the  daily  compensation  of 
the  men  you  represent.  Whereas,  on  the  other  hand,  did 
we  go  in  and  lay  down  a  declaration,  "  that  or  nothing," 
and  end  our  arguments  there,  the  possibilities  might  be 
that  we  would  conclude  the  conference  and  results  would 
have  to  be  effected  in  some  other  way  not  so  pleasant. 
Labor  in  dealing  with  capital,  and  capital  in  dealing  with 
labor,  must  sit  down  and  reason  more  than  they  have 
done  in  the  past.  I  appreciate  the  strength  of  organiza- 
tion. No  man  need  tell  me  what  forty  thousand  martial 
hosts  mean  on  the  grand  trunk  lines  of  railway  in  this 
country,  or  the  influence  they  wield,  or  the  disaster  that 
they  might  create  in  this  country's  interests  if  put  into 
action.  It  is  not  necessary  for  me,  however,  if  it  happens 
to  be  my  fortune  to  approach  the  officer  of  a  transcon- 
tinental railway,  to  first  endeavor  to  impress  him  that  we 
are  the  whole  thing  and  unless  he  bends  his  knee  or 
bows  his  head  to  our  edict  the  wheels  of  commerce  are 
going  to  stop.  That  is  not  what  should  be  brought  for- 
ward first.  First,  your  argument — conclusive,  honorable, 
manly,  taking  no  exceptions  to  the  man  who  seems  at 
first  to  disagree  with  you,  but  endeavoring  to  convince 
him  of  the  error  of  his  judgment,  and  win  him  over, 
keeping  your  strength  of  influence  of  organization  as  a 
reserve  force  to  be  brought  out  when  every  possible  argu- 
ment has  been  presented  for  conciliation,  for  arbitration, 
and  then  only  striking  a  blow  when  it  is  absolutely  neces- 
sary to  do  it,  and  when  the  great  American  public  will 
stand  supporting  labor  in  its  effort  to  obtain  justice. 

Now,  my  friends,  I  ask  this  of  you.     Give  every  man 
the  right  of  his  opinion,  and  give  him  the  right  to  express 


58  INDUSTRIAL   CONCILIATION. 

it  as  he  conscientiously  believes.  And  when  this  is  done 
you  may  be  wide  apart  in  your  views.  There  may  be 
gentlemen  in  the  labor  movement  to-day  wide  apart  from 
me,  but  I  hope  they  will  be  as  charitable  toward  me  as  I 
will  be  toward  them.  If  they  can  convince  me  that  I  am 
wrong,  if  they  can  lead  me  to  believe  that  I  am  following  a 
will-o'-the-wisp  and  will  get  swamped,  I  will  take  the  first 
side-track  I  come  to  and  get  into  the  clear.  But  so  long 
as  we  differ  in  opinions  let  us  be  closest  friends.  A 
gentleman  who  spoke  on  this  platform  yesterday  after- 
noon, representing  the  steel  industries  of  this  country, 
spoke,  no  doubt,  his  honest  convictions.  He  was  manly 
enough  to  declare  himself.  Now,  let  us,  as  representa- 
tives of  labor,  unite  our  influence,  not  by  abuse,  not  by 
attack,  but  by  an  effort  to  convert,  as  a  good  man  con- 
verts the  erring  sinner,  to  win  him  over  by  good  sound 
argument,  to  point  out  to  him  where  he  has  been  misin- 
formed or  misled  or  gone  astray,  and  perhaps  by  so 
doing  you  can  make  of  him  as  strong  an  advocate  of 
labor  organizations  as  you  have  done  of  my  esteemed 
friend  Mark  over  there. 

Mr.  Chairman,  I  appreciate  that  there  are  gentlemen 
here  of  ability,  of  knowledge,  and  understanding  of  the 
labor  movement.  I  am  but  a  kindergarten  pupil,  learn- 
ing my  lessons  from  such  information  as  I  get  here.  I 
speak  for  the  forty  thousand  men  who  fire  the  coal  into 
the  mighty  iron  horses  that  transport  the  commerce  over 
this  country  to-day,  a  body  of  men  standing  true  to  the 
principles  of  honest  organization,  no  matter  what  class 
of  labor  it  represents.  There  is  no  aristocracy  in  the 
organization  I  represent  except  the  aristocracy  of  true 
manhood,  love  of  the  flag,  and  obedience  to  the  law. 
(Applause.) 


INDUSTRIAL   CONCILIATION.  59 

MR.  STRAUS:  The  Secretary  will  read  a  telegram. 

MR.  EASLEY:  The  following  telegram  has  been  re- 
ceived from  Carroll  D.  Wright,  United  States  Commis- 
sioner of  Labor: 

"Could  I  be  present  at  the  conference  to-day,  I  should  strongly 
urge  upon  it  and  recommend  to  it  the  adoption  of  the  joint  com- 
mittee plan,  which  has  been  so  successful,  not  only  in  the  United 
States  but  in  Great  Britain,  in  adjusting  grievances  and  avoiding 
strikes.  It  has  been  demonstrated  to  be  the  most  effective  means. 
"  CARROLL  D.  WRIGHT,  Commissioner." 

MR.  STRAUS:  Gentlemen,  we  have  heard  from  the 
very  able  chief  or  Grand  Master  of  the  Brotherhood  of 
Locomotive  Firemen.  I  am  sure  you  would  like  to  hear 
from  another  branch  of  the  transportation  facilities  of 
modern  civilization.  You  remember  during  our  Spanish 
War  when  the  Oregon  was  ploughing  its  way  from  the 
Pacific  around  the  continent  to  do  its  magnificent  service, 
great  doubt  was  expressed,  by  those  who  were  not  in- 
formed, of  the  ability  of  that  battleship  to  perform  this 
immense  voyage.  But  those  who  knew,  who  knew  how 
she  was  constructed  and  where  she  was  constructed  and 
by  whom  she  was  designed,  had  faith  that  she  would  ac- 
complish precisely  what  she  did  accomplish.  The  man 
who  designed  that  noble  battleship,  the  man  who, 
perhaps,  ranks  as  the  leading  naval  architect  of  the 
world  for  his  years,  is  here  to-day.  He  is  not  an  old 
man.  And  I  have  the  pleasure  of  calling  upon  him  to 
address  us  regarding  the  industries  with  which  he  is 
familiar.  I  have  the  pleasure  of  introducing  to  you  Mr. 
Lewis  Nixon.  (Applause.) 

MR.  LEWIS  NIXON:  Gentlemen— I  did  not  come  here 
to-day  to  talk.  I  came  here  simply  to  testify  by  my 


60  INDUSTRIAL   CONCILIATION. 

presence  the  great  interest  which  I  have,  as  a  man  who 
works,  in  this  movement  which  has  come  to  the  front  to- 
day. 

I  employ  a  number  of  men.  Four  years  ago  I  con- 
cluded on  my  own  initiative  that  I  would  try  making  my 
men  union  men.  And  I  did  so  not  because  they  asked 
me  to,  but  because  I  believed  that  eventually  I  should 
accomplish  more  by  doing  so.  I  have  as  yet  no  cause 
to  regret  my  action.  There  are  a  number  of  things  in 
connection  with  organized  labor  that  the  employer  has 
to  criticise,  but,  so  far  as  I  can  see,  the  relations  of 
organized  labor  to  the  employer  present  far  more  that  is 
good  than  bad,  and  they  are  constantly  improving. 

To  my  mind,  the  reason  of  the  great  industrial  and 
commercial  development  of  the  United  States  during 
the  past  twenty  years  has  been  largely  the  fact  that 
the  employer  in  this  country  works  with  the  men 
who  work  for  him.  We  are  all  workers  here  and  all 
have  rights.  And  I  feel  that  now  we  are  about  to  bring 
about  a  kind  of  an  industrial  clearing-house  where  the 
grievances  of  both  sides  can  be  carefully  discussed  and 
fairly  weighed,  and  with  the  benefit  of  public  opinion 
upon  the  side  that  is  right  there  is  no  question  but  that 
lasting,  permanent,  and  great  benefit  will  be  derived. 
(Applause.) 

In  the  relations  that  we  have  here  we  want  to  bring 
about  an  American  spirit.  One  of  the  troubles  of  labor 
organization,  as  I  see  them — and  I  think  this  is  a  time 
for  frank  talk — is  the  fact  that  many  of  the  abuses  that 
have  grown  up  in  foreign  countries  have  been  brought 
into  the  organizations  in  this  country.  I  believe  the 
American  workman  to  be  courageous  enough  to  stand 
up  for  his  rights  and  intelligent  enough  to  know  when 


INDUSTRIAL   CONCILIATION.  6 1 

he  is  wrong.  And  this  is  of  itself  the  most  hopeful  spirit 
present  to-day.  We  are  all  willing  to  do  what  we  can, 
and  the  point  is  not  that  manufacturers  should  not  en- 
deavor to  get  the  greatest  amount  of  work  for  the  least 
amount  of  money,  but  the  workers  also  should  come  to  the 
front  and  never  be  determined  to  give  the  least  amount 
of  work  for  the  greatest  amount  of  money.  There  is  no 
question  but  within  the  last  few  months  there  has  been  a 
sentiment  in  the  minds  of  manufacturers  that  there  had 
been  the  advice  given  to  "go  easy."  Now  I  myself  have 
noticed  this,  but  I  do  not  believe  it  is  going  to  prevail. 
I  find  that  whenever  I  talk  to  a  man  who  is  working  and 
put  the  facts  plainly  before  him,  that  he  meets  me  more 
than  half-way.  There  has  never  been  any  trouble  in 
my  relations  with  men  in  my  efforts  to  get  a  fair  and 
honest  adjustment  of  any  dispute.  That  is  the  spirit 
we  must  bring  about  throughout  the  country.  Men  left 
entirely  to  themselves  and  pushed  aside  naturally  be- 
come suspicious  and  do  not  believe  that  the  men  who 
come  to  them  and  say  they  are  going  to  do  the  best  they 
can  for  them  are  always  truthful.  Many  times  they  have 
found  that  they  were  not.  They  have  found  that  they 
have  been  deceived,  that  they  have  been  kept  down 
and  in  every  way  circumscribed  in  their  general  action 
for  fear  that  they  would  get  too  much  power.  But  we 
have  to  recognize  the  union  to-day,  because  the  labor- 
union  man  does  exist  and  he  is  going  to  stay  and  he  is 
going  to  get  stronger,  at  the  same  time  that  the  employer 
is  going  to  become  stronger  and  more  powerful.  And 
as  soon  as  they  get  together  and  realize  that  they  are  all 
working  for  a  common  end,  the  better  for  all  concerned. 
I  believe  that  this  meeting  is  going  to  bring  about 
some  such  result.  We  must  not  allow  any  retrograde 


62  INDUSTRIAL    CONCILIATION. 

movement.  We  must  keep  to  the  front.  It  means  con- 
stant attention.  It  means  giving  in,  in  many  cases.  We 
have  all  got  to  be  willing  to  compromise  to  a  certain  ex- 
tent, and  I  do  not  mean  by  that  that  either  side  will  have 
to  give  up  any  rights, — there  is  to  be  no  bending  of  the 
knee, — but  both  the  laborer  and  employer  must  come  with 
well  defined  rights,  which,  after  careful  discussion,  have 
been  so  well  placed  before  both  sides  that  each  side  will 
say  when  the  decision  is  arrived  at:  "  Well,  that  is  the 
best  we  can  get,  and  we  should  be  satisfied." 

I  do  not  believe  in  coddling  men.  This  idea  of  giving 
them  things  outside  which  brings  about  a  certain  amount 
of  obligation  on  their  part  is  all  wrong.  If  you  have 
anything  to  give  them,  give  it  to  them  in  time  or  money. 
They  don't  care  for  the  outside  things.  (Applause.) 

As  I  said  before,  I  came  here  simply  to  learn.  I  was 
very  much  interested  in  the  speech  that  has  just  gone 
before  me.  A  spirit  of  that  sort  among  the  labor  leaders 
of  this  country  cannot  help  but  produce  great  and  per- 
manent results.  And  when  we  look  at  the  great  body 
of  men  that  the  last  speaker  represents,  and  see  the  won- 
derful work  they  are  doing  in  their  particular  line,  all  done 
in  a  spirit  of  conciliation  and  fairness,  and,  as  he  said,  of 
willingness  to  take  what  he  can  get  and  not  put  down  an 
absolute  challenge  and  say,  "If  you  don't  give  us  what 
we  ask,  we  will  do  nothing,  or  strike" — the  moment 
we  get  that  spirit  we  accomplish  something  lasting.  I 
stand  ready  to  do  whatever  I  can  and  to  always  meet 
and  talk  with  any  man  representing  labor  upon  an  abso- 
lutely fair  basis,  realizing  that  he  has  rights  and  realizing 
that  I  have  them,  and  that  both  of  us  are  going  to  con- 
tend, as  far  as  we  can,  without  open  rupture,  for  our 
own  best  interests,  because  the  idea  that  any  set  of  men 


INDUSTRIAL   CONCILIATION.  63 

are  going  to  abandon  their  interests  is  a  mistake— -but 
there  need  be  no  more  open  ruptures  if  men  will  reason. 
If  we  bring  about  an  American  spirit  in  this  country 
as  between  the  employer  and  the  laborer,  there  is  no 
question  but  that  the  workman  will  stand  with  the  em- 
ployer to  keep  this  country  to  the  fore  as  the  great 
manufacturing  nation  of  the  earth. 

MR.  STRAUS:  Gentlemen,  we  have  heard  from  those 
who  transport  us  by  land  and  we  have  had  the  pleasure 
of  hearing  from  a  distinguished  representative  of  those 
who  transport  us  by  sea.  There  is  still  another  method 
of  transportation  of  those  who  go  neither  by  land  nor 
sea,  but  who  go  afoot.  And  I  shall  call  upon  Mr.  Horace 
M.  Eaton,  the  General  Secretary  of  the  Boot  and  Shoe 
Workers'  Union,  of  Boston,  Mass. 

MR.  HORACE  M.  EATON:  Mr.  Chairman,  ladies,  and 
gentlemen — Our  organization  has  been  in  the  work  of 
practical  arbitration  and  conciliation  for  a  little  more 
than  three  years.  Hence,  you  will  understand  that  we 
are  more  than  ordinarily  interested  in  a  conference  of 
this  character.  I  would  like  to  say  that  one  of  the  chief 
obstacles  that  we  have  to  overcome  in  extending  the 
system  of  arbitration  in  the  manufacture  of  boots  and 
shoes  is  the  idea  that  prevails  among  the  employers  that 
they  want  to  run  their  own  business,  and  in  some  unde- 
fined way  they  have  the  fear  that  a  labor  organization  is 
going  to  prevent  them  from  doing  that  thing.  A  short 
while  ago  I  was  asked  by  a  shoe  publication  to  write  a 
short  article  and  show  cause  why  shoe  manufacturers 
should  deal  with  the  union.  The  thought  occurred  to 
me  that  I  could  do  no  better  than  direct  a  few  shafts 
at  that  notion  of  the  employers  that  they  should  run 


64  INDUSTRIAL   CONCILIATION. 

their  own  business,  not  with  the  idea  that  the  union 
should  encroach  upon  the  employer's  right,  but  with  the 
idea  of  clearly  showing  the  employer  where  his  right 
leaves  off  and  where  the  right  of  the  employees  begins. 
And  so  I  stated  in  the  article  which  I  wrote  that  if  man 
lived  by  and  for  himself  alone  and  did  not  in  any  way 
associate  with  his  fellow-men  he  could  run  his  own  busi- 
ness. How  successful  he  would  be  would  depend  upon 
his  own  labor  and  not  upon  the  labor  of  other  people. 
I  mentioned  that  Robinson  Crusoe  apparently  ran  his 
business  until  Friday  appeared,  and  then  he  proceeded 
to  run  Friday's  business.  (Applause.)  I  wished  in  mak- 
ing this  illustration  to  emphasize  the  fact  that  in  a  very 
broad  sense  we  are  servants  of  the  public,  and  that  we  do 
not  any  of  us  run  our  own  business. 

Now,  the  organization  which  I  represent  has  for  three 
years  been  making  contracts  to  arbitrate.  The  contract 
is  between  the  National  Union  and  the  employer.  The 
National  Union  assumes  to  control  the  acts  t>f  the  local 
union  and  see  to  it  that  the  local  union  keeps  its  con- 
tract. The  National  Union  is  a  police  force  to  maintain 
law  and  order  in  the  industry.  There  is  a  union  label 
proposition  which  goes  with  it  and  is  the  foundation  of 
it,  because  it  is  a  singular  fact  that  the  employers  in  the 
shoe  industry  do  not  come  into  this  arrangement  because 
of  the  equitable  character  of  the  arbitration  agreement 
itself,  but  are  in  a  measure  forced  into  it  by  the  demand 
for  union-label  goods.  And  after  they  get  into  it  they 
begin  to  realize  the  equitable  nature  of  the  contract 
itself. 

Our  contract  provides  that  all  disputes  of  whatever 
character  shall  be  referred  to  a  board  of  arbitration. 
The  contract  runs  three  years.  We  make  an  agreement 


INDUSTRIAL   CONCILIATION.  65 

for  three  years  ahead  that  any  dispute  that  comes  up 
shall  be  referred  to  a  board  of  arbitration.  That  con- 
tract is  based  upon  the  assumption  at  least  that  the  rights 
of  the  parties  are  equal,  that  after  that  contract  is  made 
the  employer  cannot  change  the  wages  without  the  con- 
sent of  the  employee,  neither  can  the  employee  change 
the  wages  without  the  consent  of  the  employer,  except 
by  a  decision  of  the  board  of  arbitration.  The  contract 
assumes  also  the  employer's  absolute  right  to  manage  his 
own  business.  He  is  absolutely  free  to  introduce  any 
system  of  machinery  or  manufacture  that  he  sees  fit.  It 
is  for  him  to  say  how  he  wants  the  work  done,  and  it  is 
for  us  to  say  whether  we  are  satisfied  with  the  wages  or 
not.  The  whole  question  with  us  is  the  question  of 
wages.  The  whole  question  with  him  is  to  direct  how 
the  work  shall  be  performed. 

We  feel  that  we  cannot  under  those  circumstances  be 
properly  charged  with  restricting  the  output.  I  noticed 
there  was  quite  a  lot  said  here  yesterday  about  restrict- 
ing the  output.  I  wish  to  call  your  attention  to  the  fact 
that  it  is  within  my  memory — and  I  have  only  eighteen 
years'  experience  as  a  member  of  the  union — that  heels 
were  nailed  on  by  hand,  and  the  average  mechanic 
could  nail  on  about  seventy  or  eighty  pairs  per  day, 
that  is,  one  hundred  and  forty  or  one  hundred  and 
sixty  shoes.  We  have  had  three  different  sets  of  machin- 
ery introduced  on  that  part  since  then,  and  to-day  we 
have  a  machine  by  the  use  of  which  a  competent  man  and 
a  boy  can  nail  on  in  ten  hours  about  three  thousand 
pairs  of  heels,  six  thousand  shoes,  ten  a  minute — take 
them  off  the  rack,  put  them  on  the  jack,  put  them  in  the 
machine,  press  the  lever  which  nails  the  heel,  take  it  out, 
and  put  it  on  the  rack  again.  Now,  if  they  had 


66  INDUSTRIAL   CONCILIATION. 

nothing  else  to  do  they  would  be  doing  ten  a  minute. 
But  they  must  gain  time  on  that  in  order  to  get 
stock  together,  to  feed  themselves,  so  to  speak. 
So  they  must  work,  while  they  are  actually  at  work,  at 
an  average  speed  of  not  less  than  fifteen  a  minute.  Now, 
with  such  an  intense  development  of  machinery  in  the 
shoe  trade,  and  such  a  high  rate  of  speed,  I  do  not  think 
we  can  be  fairly  charged  with  restricting  output.  On 
the  other  hand  it  seems  to  me  that  the  constant  intense 
application  to  fast  machinery  is  making  of  a  shoe  worker  a 
very  irritable  and  erratic  individual  sometimes.  It  spoils 
his  temper,  makes  him  easily  excitable,  working  amid  so 
much  noise  and  at  such  a  terrific  pace. 

But  I  won't  deal  with  that  question.  I  am  here  to 
give  you  a  few  facts  of  this  system  of  arbitration  which 
we  are  developing.  Some  of  the  parties  that  we  negotiate 
with  assume  that  once  they  have  entered  into  an  agree- 
ment with  a  union  to  arbitrate,  the  various  departments 
of  their  factories  will  be  in  the  hands  of  the  board  of 
arbitration  all  the  time.  That  is  one  of  the  fears  they 
entertain.  Now,  it  is  a  fact  that  in  the  State  of  Massa- 
chusetts, where  we  have  more  of  these  contracts  than  we 
have  anywhere  else,  we  have  only  arbitrated  three  cases 
in  three  years.  One  of  them,  which  is  the  only  one  I 
can  speak  with  absolute  information  about,  involved  a 
difference  in  dispute  of  a  twelfth  of  a  cent  a  pair  in  the 
labor  cost  of  a  pair  of  shoes.  So  you  can  see  it  was  not 
a  very  gigantic  difference.  The  fact  is  that  inasmuch 
as  we  had  agreed  to  arbitrate  we  don't  arbitrate  at  all; 
we  settle  it  up  amongst  ourselves.  (Applause.) 

Another  peculiar  tendency  of  these  agreements  we  are 
making  is  that  they  are  making  of  the  national  officers  of 
our  union,  that  is  my  colleague  and  myself,  judges.  Our 


INDUSTRIAL   CONCILIATION.  67 

work  is  becoming  of  a  judicial  character.  I  have  in 
mind  one  factory  working  under  our  system  upon  which 
we  have  three  times  sat  as  judges  between  the  local  union 
and  the  manufacturer,  the  employer,  to  decide  points  at 
issue  which  were  left  to  us  to  decide  by  both  parties,  and 
we  went  over  and  listened  to  the  arguments  on  both 
sides  and  then  rendered  a  decision.  That  has  happened 
three  times  in  one  instance  with  apparently  perfect  satis- 
faction all  around.  We  have  another  instance  where  the 
contract  provides  for  what  we  call  a  local  board  of 
arbitration,  that  is,  the  employer  chooses  one,  the  em- 
ployees choose  one,  and  the  two  choose  a  third,  and  in 
this  case,  by  consent  of  both  of  the  parties,  should  those 
two  fail  to  select  a  third,  it  is  left  to  the  national  officers 
to  select  a  third  arbitrator. 

I  merely  mention  these  instances  to  show  that  where 
once  the  employer  and  the  employees  have  come  together 
under  agreement  to  submit  their  cases  to  arbitration 
a  feeling  of  mutual  respect  and  confidence  develops 
which  makes  it  in  most  cases  unnecessary  to  go  to  the 
court  of  last  resort.  (Applause.) 

MR.  STRAUS:  Gentlemen,  I  now  have  the  pleasure  of 
calling  upon  a  gentleman  who  is  identified  with  labor  so 
prominently  and  so  honorably,  and  in  such  a  distin- 
guished capacity,  that  he  requires  very  little,  in  fact  no 
introduction  whatever.  His  name  is  his  own  introduc- 
tion. I  have  the  pleasure  of  introducing  to  you  Mr. 
Samuel  Gompers,  President  of  the  American  Federation 
of  Labor.  (Applause.) 

MR.  SAMUEL  GOMPERS:  The  whole  struggle  of  the 
human  family  has  been  to  secure  a  better  condition  for 
those  who  work.  In  the  early  history  of  man,  when  his 


68  INDUSTRIAL   CONCILIATION. 

tools  of  labor  were  identical  with  his  weapons  of  offence 
and  defence,  the  wars  of  conquest  went  on,  but  those 
captured  in  battle  were  not  retained  by  their  conquer- 
ors; they  were  put  to  death. 

The  safety  of  the  conquerors  demanded  the  death  of 
the  conquered.  They  could  not  be  made  slaves  and 
forced  to  work,  for  this  furnished  the  slaves  with  the 
identical  and  only  weapons  with  which  the  conquerors 
were  armed,  and  always  gave  the  conquered  an  oppor- 
tunity for  their  freedom. 

It  was  a  marvellous  advance  that  differentiated  the 
weapon  of  war  from  the  tool  of  labor.  The  first  step  in 
this  direction  pointed  the  way  to  the  farthest  and  most 
effectual  advance  in  the  civilization  of  the  human  family. 

When  that  first  differentiation  took  place,  the  captives 
were  no  longer  put  to  death.  They  were  made  slaves 
and  forced  to  produce  wealth  while  the  conquerors 
marched  in  their  warlike  armor  toward  new  conquests. 

I  shall  not  attempt  to  trace  the  historical  development 
of  the  workers'  struggles  for  recognition  of  their  rights, 
except  to  say  this,  that  the  change  went  on  from  slave 
to  serf,  and  from  serf  to  wage- worker;  so  that  we  now 
find  ourselves  in  the  condition  where  the  wage-worker  is 
placed  in  competition  with  his  fellow  wage-worker.  It 
is  the  desire  of  the  workers  to  reduce  the  evil  side  of 
that  competition  to  its  minimum. 

In  our  new  twentieth  century  we  are  living  in  an  era 
of  the  highest  development  of  industry.  Concentration 
of  wealth  and  power  is  in  the  direction  of  securing  the 
greatest  production  by  the  fewest  possible  factors. 
What  are  these  wonderful  productive  forces  ? 

The  improvement  of  machinery,  the  division  and  sub- 
division of  labor,  the  application  of  new  propelling 


INDUSTRIAL   CONCILIATION.  69 

forces  of  steam  and  electricity  and  water, — all  these 
great  powers  and  motives  and  influences  converge  to  the 
one  point  of  increasing  the  production  of  wealth  by  the 
workers. 

Let  me  say  to  you,  my  friends,  that  even  with  that 
picture  in  mind,  there  are  still  some  in  our  day  who 
speak  of  the  individuality  of  the  worker. 

I  grant  you  that  where  economic  and  social  conditions 
admit  of  individual  action,  that  is  the  ideal  situation. 
But  when  we  find  on  the  one  hand  a  great  concentration 
of  wealth  and  power,  accompanied  by  a  marked  concen- 
tration of  industry,  with  the  direction  of  the  great  indus- 
trial and  distributing  forces  placed  in  the  hands  of  a  few, 
it  is  as  idle  for  the  individual  worker  to  attempt  to  obtain 
redress  for  bad  conditions  as  it  is  for  a  vessel  to  survive 
a  hurricane  without  rudder  or  seamen  to  guide  her. 

What  is  necessary  is  that  the  workers,  so  far  as  con- 
sistent with  their  social  and  political  liberty,  shall  merge 
their  economic  interests  with  those  of  their  fellow-work- 
ers, and  by  that  method  endeavor  to  obtain  consideration 
for  the  rights  of  both  the  elements  in  production. 

In  our  industrial  system  of  society  I  would  not  have 
the  rights  of  an  employer  toyed  with  nor  flagrantly  vio- 
lated. Also,  I  want  to  say  that  I  will  not  tolerate,  nor 
stand  by,  nor  permit,  so  far  as  my  powers  and  opportu- 
nities may  afford,  that  the  rights  of  the  weakest  of  our 
fellow-workers  shall  be  trampled  upon. 

There  is  in  our  time,  if  not  a  harmony  of  interests, — 
which  I  shall  not  attempt  to  discuss  at  this  time,  because 
there  is  a  divergence  of  opinion  upon  that  subject, — yet 
certainly  a  community  of  interests,  to  the  end  that  indus- 
trial peace  shall  be  maintained. 

I  will  not  join — I  have  not  joined — in  that  hue  and 


70  INDUSTRIAL   CONCILIATION. 

cry  against  combinations  of  capital.  I  realize  that  that 
is  a  matter  of  economy  and  development  and  strength. 

But  I  do  say,  and  I  might  say  it  parenthetically,  that 
I  object  to  the  organizations  of  capital  popularly  known 
as  "Trusts,"  when  they  attempt  to  interfere  with  the 
political  affairs  of  our  country,  and  particularly  the 
judiciary.  I  am  speaking  of  them  from  an  industrial 
and  not  from  a  commercial  point  of  view. 

I  want  to  see  the  organization  of  the  wage-earners  and 
the  organization  of  the  employers,  through  their  respec- 
tive representatives,  meet  around  the  table  in  the  office 
of  the  employers  or  in  the  office  of  the  union,  if  you 
please,  or,  if  that  be  not  agreeable  to  either,  then  in  an 
office  or  a  room  upon  neutral  ground,  there  to  discuss 
the  questions  of  wages  and  hours  of  labor  and  condi- 
tions of  employment  and  all  things  consistent  with  the 
industrial  and  commercial  success  of  our  country,  that 
shall  tend  to  the  uplifting  of  the  human  family. 

One  difficulty  has  been  that  employers  of  labor  have 
turned  their  backs  upon  the  workers  because  the  latter 
organized  and  attempted  to  secure  recognition  of  the 
fact  that  they  are  basic  elements  in  the  production  and 
distribution  of  wealth,  and  as  such  have  a  right  to  be 
consulted  as  to  the  conditions  under  which  either  or 
both  shall  be  conducted. 

We  assert  that  the  employer  has  no  right  to  say  to  us 
that  there  is  not  anything  to  arbitrate.  In  that  declara- 
tion is  embodied  all  the  evil  and  viciousness  of  the 
principle  of  master  and  slave. 

When  organized  labor  says,  "  We  want  to  arbitrate," 
it  means  that  the  employer  or  his  representative  shall 
meet  with  the  workers,  or  their  representatives,  and  en- 
deavor calmly  and  carefully,  intelligently  and  humanely, 


INDUSTRIAL    CONCILIATION.  J\ 

to  arrive  at  a  result  that  shall  be  beneficial  to  both  and 
to  all  the  people. 

We  realize,  too,  that  an  agreement  with  an  employer 
is  an  obligation  which  ought  to  be  as  faithfully  kept  as 
a  bond  or  the  oath  of  allegiance  to  our  country. 

We  object  to  holding,  legally  or  otherwise,  the  organi- 
zations of  labor  liable  in  damages  for  the  violation  of 
agreements  either  by  an  officer  of  the  organization  or 
even  the  collectivity  as  expressed  by  the  organization 
itself.  The  reason  is,  that  we  have  in  mind  the  experi-. 
ence  of  centuries  ago,  when  the  organization  of  the 
toilers  in  the  old  guilds  was  destroyed  and  their  funds 
confiscated  simply  at  the  whim  of  the  crown  or  those 
who  stood  for  it. 

We  believe  that  the  greatest  damage  which  can  be  in- 
flicted upon  the  workers  is  to  reap  the  fruits  of  their 
own  folly  when  they  are  wrong.  Nothing  can  contri- 
bute so  much  to  rectify  errors.  Nothing  tends  so  much 
to  bring  about  a  clearer  understanding  of  the  mutual 
rights  of  both  workmen  and  employers  as  the  endeavor 
to  place  their  errors  behind  them  and  to  learn  by  their 
mistakes. 

We  are  endeavoring  to  place  the  movement  of  the 
workers  upon  a  higher  plane  of  ethical  consideration. 
We  are  desirous  of  the  good  will  of  employers  and  the 
employing  class  and  their  representatives.  Our  move- 
ment makes  for  the  common  good  of  all  and  instils  into 
the  minds  and  hearts  of  our  fellow-toilers  in  unions  the 
same  elements  of  honor  that  we  expect  in  individuals. 
No  man  can  maintain  his  self-respect  or  command  the 
respect  of  his  neighbors  and  friends  unless  his  word  can 
be  absolutely  relied  upon.  It  is  the  same  with  unions. 

We  want   better   relations  with  the  employing  class. 


72  INDUSTRIAL   CONCILIATION. 

We  are  contributing  our  quota  toward  that  desirable  end. 
But  we  claim,  even  if  it  be  not  generally  recognized, 
that  there  is  no  factor  in  our  behalf  so  potent  to  secure 
consideration  at  the  hands  of  our  employers,  or  fair  agree- 
ments from  them,  or  a  faithful  adherence  to  the  terms 
of  the  contracts  or  agreements,  as  a  well  organized  body 
of  wage-earners  in  the  unions  of  their  trades  and  callings; 
these  combined  in  the  national  unions  and  still  further 
associated  in  a  thorough  federation  of  all  organized 
workers. 

My  friends,  I  came  here  directly  from  the  twenty-first 
convention  of  the  American  Federation  of  Labor,  the 
highest  and  best  organized  and  most  thoroughly  feder- 
ated effort  of  the  workers  of  the  world  that  has  ever 
existed.  Coming  from  their  ringing  appeals  and  their 
arguments  and  their  philosophy  and  the  yearnings  and 
expressions  of  hope,  as  well  as  their  complaints  of  errors 
and  wrongs  of  the  past,  let  me  assure  you  that  the 
organized  workers  of  America  have  no  fear  for  the 
future,  whatever  may  present  itself. 

They  are  true,  loyal,  faithful,  and  devoted  citizens  of 
our  country,  loving  its  institutions,  revering  its  tradi- 
tions, and  honoring  the  men  who  have  made  this  great 
country  of  ours  what  it  is.  Realizing  the  very  many 
changed  conditions  that  have  come  about,  the  workers 
have  no  fear  for  the  future,  but  rely  upon  the  justice  of 
their  cause,  the  humane  aspirations  which  prompt  them, 
and  the  grit  and  the  manhood  that  make  up  the  Ameri- 
can character,  to  solve  all  problems. 

MR.  STRAUS:  Gentlemen,  you  have  had  the  pleasure 
of  listening  to  the  foremost  representative  of  organized 
labor  in  this  country.  I  shall  now  call  upon  a  gentle- 


INDUSTRIAL   CONCILIATION.  73 

man  who  comes  here  as  a  fraternal  delegate  to  the 
American  Federation  of  Labor  from  Great  Britain, 
Mr.  Benjamin  Tillett. 

MR.  BENJAMIN  TILLETT:  Mr.  Chairman  and  friends— 
You  have  heard  the  very  forceful  address  from  an  old 
colleague  of  mine,  and  I  think  he  has  presented  some  of 
the  salient  features  of  our  movement  and  has  expressed 
many  of  our  arguments.  I  might  say,  Mr.  Chairman, 
that  though  I  am  comparatively  a  young  man,  I  have 
seen  more  than  a  score  of  years  of  service,  and  although 
I  have  been  through  many  campaigns  and  seen  many 
changes  in  the  thought  of  the  workers  of  the  country  I 
belong  to,  I  feel  more  hopeful  than  ever  that  a  saner 
policy  will  be  expressed  toward  labor  by  the  capitalists 
of  the  future.  I  think  in  our  country  we  have  gone  a 
great  way.  Our  colonies  have  adopted  compulsory 
arbitration.  They  don't  fear  the  judiciary  or  the  cor- 
ruption of  the  judicial  mind.  They  don't  fear  the 
political  influences  behind  the  judicial  mind.  And  they 
frankly,  openly,  and  honestly  demanded  the  full  recog- 
nition of  their  citizenship  and  have  taken  their  place 
in  the  law  and  the  government  of  the  country.  We 
have  in  Britain — or  in  England  proper — many  associa- 
tions between  employers  and  workmen,  and  generally 
speaking  the  more  these  two  parties  realize  each  other 
the  more  they  understand  that  labor  has  long  ago 
dropped  its  serfdom  and  has  come  out  to  demand  the 
full  recognition  of  its  humanity,  and  therefore  as  a  factor 
in  production  it  claims  that  the  wealth  created  shall  not 
be  merged  in  aggregations  of  capital  but  shall  go  toward 
the  uplifting  of  the  level  of  the  living  and  the  making  of 
a  more  robust  nation.  We  have  our  sliding  scales  and 
our  conferences,  and  I  should  say  that  in  this  country 


74  INDUSTRIAL   CONCILIATION. 

where  the  problem  seems  to  be  more  acute  than  our 
own,  it  requires  level-headed  men.  I  could  endorse  the 
position  of  one  of  your  speakers  yesterday,  that  the  arbi- 
trator for  industrial  peace  in  America  has  a  greater  honor 
and  distinction  than  to  be  your  President. 
\  We  want  labor.  And  labor  is  a  consumer  as  well  as 
a  producer.  We  belonging  to  trade-unions  are  not 
disposed  to  find  fault  with  the  trusts  of  capital.  We 
ourselves  are  a  trust  of  labor.  We  wish  to  eliminate 
every  form  of  servile  and  slavish  conditions  that  prevents 
a  man  demanding  his  right  to  live  and  demanding  his 
right  to  work.  And  so  being  in  a  labor  trust  we  say  that 
the  trusts  must  grow  and  their  main  object  ostensibly 
will  be  to  do  away  with  extraneous  or  unnecessary  ex- 
penses, and  to  bring  the  commodity  under  its  best  form 
and  under  the  most  economical  conditions  and  in 
the  cheapest  manner  to  the  consumer.  That  is  an 
economic  condition  and  we  are  not  going  to  grumble 
about  it.  But  we  say  as  workmen  that  a  million  of 
money  spent  in  wages  for  circulation,  a  million  spent 
upon  the  workers  in  better  food  and  better  conditions, 
contributes  many  times  more  toward  trade,  and  prosper- 
ity, and  is  more  useful,  than  a  hundred  millions  spent  in 
any  other  form.  (Applause.)  For  that  reason  we  say: 
you  talk  of  killing  the  goose  that  lays  the  golden  egg, 
but  in  the  past  the  capitalists  have  been  killing  the  goose 
that  has  been  eating  the  stuff  or  trying  to.  The  workman 
is  not  merely  a  producer,  he  is  a  consumer,  and  as  a 
consumer  makes  for  trade,  j 

Putting  it  upon  its  practical  line,  we  say  there  is  no 
reason  for  the  arbitrament  of  the  strike  to  take  place. 
But  you  in  this  country,  we  are  watching  you.  The 
trusts  are  growing  in  our  own  country.  I  am  not  here 


INDUSTRIAL   CONCILIATION.  f$ 

to  say  that  there  can  be  absolutely  sweet  brotherly  feel- 
ings between  capital  and  labor — the  economic  antagonism 
prevents  that — but  I  don't  see  why  a  sane  business  re- 
lationship should  not  exist.  The  capitalists  fight  each 
other,  the  millionaires  fight  each  other,  and  surely  it 
is  illogical  and  inconsistent  of  them  to  say  that  we  ought 
not  to  fight  for  our  little  bit  when  they  do  not  scruple  in 
their  business  concerns  to  take  advantage  of  their  neigh- 
bor, holding  up  a  railway,  holding  up  a  harvest,  corner- 
ing here,  cornering  there.  Surely  that  is  antagonism,  and 
when  these  gentlemen  are  absolutely  singing  the  one  song 
and  are  loving  each  other  and  have  no  competition,  it 
will  be  right  for  them  to  come  and  tell  us  to  have  no 
competition  as  against  them.  So  long  as  we  understand 
that  we  are  not  going  to  slobber  on  each  other's 
shoulders,  so  long  as  we  understand  that  there  is  an  an- 
tagonism and  that  the  workers  as  consumers  must  be 
antagonistic  to  the  capitalist  who  holds  and  possesses 
the  productive  powers, — the  worker  as  a  consumer 
must  feel  his  antagonism — as  a  worker  he  must  feel  that 
also, — we  can  then  raise  the  antagonism,  I  hope,  to  a  high 
plane,  to  a  high  level,  taking  the  place  of  those  fierce 
fights  that  have  happened.  There  are  more  men  killed  by 
work  than  war,  much  as  we  deplore  war.  (Applause.) 
There  are  worse  conditions  even  during  industrial 
peace.  There  is  the  sum-total  of  the  wretchedness, 
the  sum-total  of  the  deaths,  and  the  sum-total  of  the 
diseased.  Rapine  and  war  cannot  compare  with  the 
misery  which  exists  so  long  as  poverty  exists.  We 
are  not  saying  that  the  capitalist  ought  to  do  away 
with  poverty.  We  will  do  that  ourselves  (applause),  but 
we  do  say  that  we  ought  to  have  a  fair,  square  deal,  a 
fair,  square  fight,  and  that  so  long  as  they  claim  the 


76  INDUSTRIAL   CONCILIATION. 

right  to  be  in  a  trust  of  capital  we  claim  the  right  to  be 
in  a  trust  for  labor  and  determined  to  eliminate  every 
factor  that  will  keep  us  from  attaining  the  mental  and 
moral  condition  of  beings  which  it  has  taken  the  Creator 
millions  of  years  to  make,  and  one  drop  of  whose  blood's 
mechanism  is  finer  and  more  complex  than  the  most 
clever  of  invented  machinery.  We  say  when  we  realize 
what  it  means  to  create  a  man  that  we  want  to  raise 
ourselves  to  the  level  of  that  manhood  and  demand  from 
the  conditions  of  our  country  and  our  environment  some- 
thing that  will  not  make  us  less  a  man  but  will  bring  us 
nearer  to  the  conception  of  that  Godhead  where  we  can 
live  honest,  open,  robust  lives.  (Applause.) 

The  man  of  old  who  stood  upon  Pisgah  and  saw  his 
people  in  the  wilderness  quarrelling  with  each  other — 
there  is  no  Moses  to-day,  there  is  no  Pisgah  that  I  can 
see,  except  the  Pisgah  of  hope.  And  from  our  Pisgah 
we  look  beyond,  beyond  Canaan,  and  we  see  whatever 
the  strife  may  be,  whatever  the  chicanery  or  corruption. 
However  much  abuse  of  power  those  holding  the  capital 
of  the  country  may  be  guilty  of,  we  believe  in  the  people, 
we  believe  in  the  eternal  justice  of  their  cause.  We  be- 
lieve that  as  invention  is  added  to  invention,  continent  to 
continent,  resource  to  resource,  and  as  every  one  of  the 
secrets  revealed  is  the  revealing  of  mother  nature's  great 
love,  we  must  fight  those  who  would  stand  between  us 
and  our  rightful  share  of  man's  evolution.  We  must  fight 
them  with  brains,  fight  them  with  our  souls,  and  fight  not 
only  to  command  ourselves,  but  to  command  our  country 
and  command  the  right  of  being  a  man  and  not  a  chattel. 
The  capitalists  in  the  old  country  in  the  past  said  we 
had  no  right;  they  had  the  money  and  we  had  to  do  as 
they  told  us.  We  said  we  were  men  like  them — we  also 


INDUSTRIAL   CONCILIATION.  77 

were  men  and  demanded  the  right  to  do  with  our  own 
what  we  chose.  In  this  country  of  yours  it  is  going 
to  be  the  centre  of  a  great  economical  revolution. 
The  efforts  of  this  country  must  be  for  the  good  of  your 
country.  I  hail  with  satisfaction  the  attempt  made  to 
bring  closer  to  each  other  those  who  for  economic 
and  social  reasons  are  apart,  in  order  that  at  least 
the  outcome  of  it  may  be  that  you  will  understand 
each  other  better.  Anyway  we  stand  on  our  side  for 
our  manhood  and  we  recognize  the  right  of  no  man 
to  make  a  slave  of  another.  These  capitalists  of 
yours,  they  have  a  terrible  responsibility,  and  I  would 
rather  be  a  laborer  obscure,  I  would  rather  be  a  poor 
thing  of  the  street  on  the  Judgment  Day,  than  I  would 
be  the  man  who  has  abused  the  tremendous  powers 
placed  in  his  hands,  and  has  paid  no  heed  to  the  misery 
that  has  been  involved  in  the  sacrifices  that  yielded 
to  him  his  wealth.  I  say  I  would  rather  be  the  worst 
thing  on  this  earth  before  my  Maker  than  I  would  be 
that  capitalist  who  has  ignored  the  tremendous  obliga- 
tion placed  upon  him  by  his  wealth.  We  recognize  our 
obligation.  Work  is  blessed.  Let  it  be  noble.  Let  it 
be  dignified.  If  it  is  not  noble  or  dignified,  then  it 
is  slavery,  and  the  country  that  supports  it  is  a  country 
that  cannot  live,  unless  history  lies.  Wherever  slavery 
existed  empires  have  fallen.  And  in  that  greater  wisdom 
of  the  larger  mind  and  the  larger  heart  it  may  be  that 
this  economical  revolution  will  afford  in  time  to  come 
such  a  solution  of  the  problem  that  all  these  inventions 
and  all  the  things  that  go  to  improve  our  methods  and 
increase  our  productivity  will  be  used  not  for  the  pur- 
poses of  a  class  or  a  few,  but  will  be  used  for  the  blessing 
of  mankind  in  general. 


78  INDUSTRIAL   CONCILIATION. 

MR.  STRAUS:  Gentlemen,  after  listening  to  the  elo- 
quent address  of  the  delegate  from  England,  who  cer- 
tainly speaks  for  himself  and  shows  what  an  eloquent 
man  has  been  sent  over  here  from  abroad,  I  have  the 
pleasure  of  calling  upon  the  representative  of  the  largest 
labor  organization  in  the  world — the  United  Mine  Work- 
ers' Union,  which  I  am  told  has  285,000  men.  I  refer 
to  Mr.  John  Mitchell,  President  of  the  United  Mine 
Workers'  Union.  (Applause.) 

MR.  JOHN  MITCHELL:  Mr.  Chairman  and  gentlemen — 
I  understand  that  the  hour  has  about  arrived  when  the 
sessions  of  this  conference  are  scheduled  to  close,  and, 
having  been  prevented  by  circumstances  over  which  I 
had  no  control  from  enjoying  the  pleasure  of  listening 
to  the  speakers  who  have  addressed  this  conference  at  its 
previous  sessions,  I  fear  there  is  some  danger  of  my  re- 
peating what  other  speakers  may  have  said;  however, 
briefly  stated,  to  me  the  question  of  the  proper  relation- 
ship between  labor  and  capital,  or,  more  accurately 
speaking,  between  working  men  and  capitalists,  is  not  a 
complex  problem;  it  is  not  one  which  requires  the  in- 
troduction or  the  consummation  of  Utopian  theories, 
or  the  conversion  of  the  public  to  any  particular  ism. 
To  my  mind — and  I  have  participated  in  about  as  many 
industrial  wars  as  any  one  of  my  age — the  application  of 
reason  and  common  horse-sense  on  the  part  of  the  em- 
ployers of  labor  and  the  representatives  of  the  workmen 
is  all  that  is  required.  If  the  employers  of  labor  and  the 
representatives  of  the  labor  unions  would  meet  in  confer- 
ence; if  when  they  met  they  would  be  governed  by  facts; 
if  they  would  tell  each  other  the  absolute  truth,  I  dare- 
say that  the  days  of  strikes  and  lockouts  would  be  over. 
I  have  never,  in  all  my  experience,  seen  a  strike  that 


INDUSTRIAL   CONCILIATION.  79 

could  not  have  been  averted  if  the  employers  and  the 
representatives  of  the  employees  had  met  in  joint  con- 
ference before  the  strike  was  inaugurated;  provided,  of 
course,  that  the  conferees  were  actuated  by  honest 
purposes  and  lofty  motives. 

I  understand  that  the  purpose  of  this  conference  is  to 
try  to  perfect  an  arrangement  between  men  representa- 
tive of  capital,  men  representative  of  labor,  and  men 
representative  of  the  business  and  professional  interests 
of  our  country,  whereby  strikes  and  lockouts,  with  their 
attendant  sufferings  and  losses,  may  be,  if  not  entirely 
eliminated,  at  least  reduced  to  a  minimum.  This  move- 
ment had  its  inception  in  Chicago,  about  one  year  ago; 
and  if  carried  on  to  the  conclusion  fondly  hoped  for  then 
our  entire  nation  shall  have  cause  to  rejoice,  and  more 
shall  have  been  done  to  solve  the  problem  of  the  rela- 
tionship between  capitalists  and  laborers  than  by  any 
previous  movement  in  our  country. 

If  the  men  who  have  taken  part  in  this  meeting,  if  the 
men  who  are  interested  in  this  movement  will  give  as 
much  thought,  time,  and  energy  to  make  it  successful  as 
the  representatives  of  labor  have  given  to  their  own  par- 
ticular branches  of  industry,  then  I  daresay  something 
tangible  will  come  out  of  it;  and  before  one  year  shall 
have  passed  the  effects  and  results  will  have  been 
demonstrated,  and  strikes  and  lockouts  perceptibly 
reduced. 

In  closing  these  few  remarks  I  desire  to  say,  as  one 
who  knows  the  effects  of  industrial  war,  that  no  one  more 
than  I  shall  welcome  the  day  of  industrial  peace.  I  have 
said  on  many  occasions  that  I  was  opposed  to  strikes, 
opposed  to  lockouts,  opposed  to  industrial  turmoil; 
that  I  favored  peace,  but  always  with  the  qualification 


80  INDUSTRIAL   CONCILIATION. 

that  it  must  be  an  honorable  peace.  There  will  never 
be  peace  between  the  men  who  work  and  those  who 
employ  men  to  work  unless  that  peace  guarantees 
to  each  that  which  is  their  proper  due;  and  as  I  said 
before,  if  through  the  medium  of  this  movement  we  can 
bring  the  representatives  of  each  of  these  apparently 
antagonistic  forces  together,  if  we  can  sit  down,  look 
into  each  other's  eyes,  tell  each  other  the  exact  truth, 
then  the  happy  days  of  industrial  peace  and  prosperity 
for  all  shall  have  arrived. 

MR.  STRAUS:  I  now  have  the  pleasure  of  calling  upon 
Mr.  James  Duncan,  the  First  Vice-President  of  the 
American  Federation  of  Labor,  and  Secretary  of  the 
Granite  Workers'  Union. 

MR.  JAMES  DUNCAN:  Mr.  Chairman  and  friends  — 
This  is  the  first  conference  of  the  Civic  Federation  it 
has  been  possible  for  me  to  attend,  and  I  therefore  come 
here  more  as  a  spectator  than  as  a  participant  in  speech- 
making.  I  desire  to  say,  however,  that  I  congratulate 
those  who  compose  this  conference  and  who  conceived 
the  idea  of  meetings  of  this  kind,  for  it  shows  more 
clearly  perhaps  than  can  be  spoken  in  words  that  the 
efforts  of  the  laboring  men  of  the  world  have  not  been 
in  vain.  The  great  labor  movement  of  which  we  as 
workers  are  humble  members  stands  primarily  for  peace, 
peace  with  justice.  We  are  not  disposed  to  view  the 
one  without  the  other;  and  when  one  is  offered  without 
the  other  we  feel  that  we  have  been  treated  unfairly. 

I  do  not  care  at  the  present  time  to  go  into  the  histori- 
cal side  of  the  question.  Mr.  Gompers  dealt  with  it 
somewhat,  and  the  time  is  too  short  to  take  up  that  part 
of  the  story,  even  where  he  left  it,  and  carry  it  to  the 


INDUSTRIAL   CONCIL/ATION.  8 1 

present  time.  But  I  desire  to  impress  upon  you  the  fact 
that  the  labor  movement  even  as  we  know  it  in  our  day 
is  not  new.  It  has  been  groping  along  ever  since  the 
dawn  of  civilization  wherever  there  was  a  wrong  to 
redress.  There  are  many  who  think  that  the  labor  move- 
ment practically  began  since  the  Civil  War.  This  is  be- 
cause matters  have  taken  place  since  then  which  have 
brought  it  more  to  their  attention  than  any  that  occurred 
prior  to  that  time,  excepting  in  the  great  outbursts 
which  in  many  instances  might  be  called  revolutions 
rather  than  the  evolutionary  development  of  the  con- 
dition of  the  lowly  and  downtrodden. 

We  therefore  feel,  that  standing  for  peace  and  having 
struggled  for  it— and  some  of  us  can  even  remember 
the  time  when  a  man  who  was  a  unionist  and  stood  for 
the  interests  of  his  fellow-worker  was  pointed  out  as  a 
dangerous  citizen,  as  a  man  who  had  to  be  watched  lest 
in  some  part  of  his  daily  performances  something  might 
happen  to  the  danger  of  the  community  at  large — that 
such  a  change  in  the  space  of  a  quarter  of  a  century 
during  which  the  feeling  I  have  referred  to  has  been 
eliminated,  so  that  a  laboring  man  at  the  present  time  is 
looked  upon  as  being  fashionable  if  he  is  a  member  of 
his  trade  organization — has  perhaps  been  as  much  the 
cause  as  anything  else  in  bringing  about  conferences  of 
this  kind.  The  public  at  large  has  arrived  at  the  con- 
clusion that  there  is  more  back  of  the  movement  advo- 
cated by  the  union  men  of  the  country  and  of  the  social 
reform  organizations  than  at  first  appeared,  and  in  conse- 
quence they  are  giving  the  subject  fuller  consideration. 
It  is  pleasing  indeed  to  the  student  of  sociology  to  know 
that  such  is  the  case. 

If  there   were   any   danger  of  our  labor  movement 

6 


82  INDUSTRIAL   CONCILIATION. 

following  the  course  of  similar  movements  in  the  older 
countries  and  losing  respect  for  the  government  of  the 
country  it  would  be  because  the  toilers  have  become 
cognizant  of  the  fact  that  from  time  to  time  the  common 
people  are  denied  their  civil  rights  both  by  what  should 
be  popular  government,  and  by  the  judiciary;  and  espe- 
cially that  the  man  with  a  large  bank  account  is  able  to 
get  favorable  consideration  in  our  legislatures  and  even 
judicial  decisions  in  his  favor  because  of  his  wealth.  I 
am  not  one  who  believes  that  the  courts  are  absolutely 
turned  over  to  the  rich  and  against  the  poor.  I  know, 
however,  that  in  conflicts  in  which  lawsuits  are  made 
part  of  the  controversy  the  fact  that  the  rich  are  better 
able  to  carry  their  cases  into  court  and  to  fight  for  them 
through  well  trained  and  high-priced  attorneys  makes 
them  more  confident  of  getting  decisions  in  their  favor. 
The  workers,  therefore,  do  not  look  upon  that  form  of 
procedure  as  containing  a  great  amount  of  good  or 
justice  to  them. 

I  started  by  saying  that  I  came  as  a  listener,  but  I 
want  to  say  before  sitting  down  that  I  hope  something 
good  and  tangible  will  come  from  this  meeting.  There 
are  evidences  of  progress  of  the  kind  desired  already 
throughout  the  land.  We  have  arbitration  boards  in 
several  States  which  have  followed  the  ideas  put  forth 
at  this  conference  and  have  been  productive  of  great  good 
to  employer  and  employee.  We  find  that  voluntary 
arbitration  is  productive  of  the  greatest  amount  of  good, 
and  I  believe  that  from  such  deliberations  upon  disputed 
points  and  from  the  influence  of  conferences  of  this 
kind  a  new  era  has  arrived  wherein  the  cause  for  which 
we  stand  will  be  given  fuller  consideration  than  it  ever 
has  had  before,  and  will  be  fraught  with  better  results. 


INDUSTRIAL   CONCILIATION.  83 

The  working  people  of  the  United  States  and  Canada 
stand  for  a  form  of  expansion  which  has  heretofore 
not  been  given  the  consideration  that  another  form 
of  expansion  has  received  in  the  recent  affairs  of  our 
country.  I  listened  very  closely  to  the  statement  of 
the  speaker  who  preceded  me — Ben  Tillett  of  the  Lon- 
don Dockers — upon  the  important  question  of  consumers 
of  production,  and  I  want  to  say  that  if  from  our  confer- 
ences here  the  idea  can  go  forth  that  industrial  expan- 
sion at  home  is  to  be  given  the  full  consideration  its 
importance  requires,  we  will  be  able  in  the  near  future 
to  make  the  word  "expansion"  more  honorable  than 
it  is  at  present  in  the  political  arena.  I  have  not 
the  time  to  debate  the  policy  of  the  Government  in 
gathering  in  the  islands  of  the  Atlantic  and  the 
Pacific,  but  I  stand  for  expansion  at  home.  I  contend 
for  conditions  among  our  own  people  whereby  they 
will  be  recognized  as  the  most  profitable  consumers, 
for  then  the  manufacturers  of  our  country  will  find  that 
the  home  market  is  better  for  them  than  any  market  they 
can  get  abroad.  (Applause.)  When  the  time  arrives 
that  each  working  man  in  our  broad  land  knows  that  he 
has  at  his  command  two  or  three  suits  of  clothes  and  two 
or  three  pairs  of  shoes  in  place  of  being  dependent  upon 
one  suit  or  one  pair  and  scarcely  knowing  where  the 
others  will  come  from  when  his  meagre  supply  is  unfit 
for  further  use — when  that  time  has  arrived  and  other 
similar  opportunities  of  consuming  native  products  are 
given  to  the  common  people,  a  market  for  home  produc- 
tion will  be  provided,  compared  with  which  there  is 
nothing  to  be  found  in  the  markets  outside  of  where  Old 
Glory  flies.  We  therefore  stand  for  expansion  at  home, 
and  it  can  be  safely  bought  about  by  a  fair  reduction  of 


84  INDUSTRIAL   CONCILIATION. 

the  working  hours  to  not  over  eight  per  day  with  safe 
and  consistent  increase  of  remuneration  such  as  would 
enable  the  producer  and  those  dependent  upon  him  to 
be  consumers  to  the  extent  of  satisfying  their  normal 
and  rational  desires  of  home  life  and  good  citizenship. 
I  do  not  believe  there  is  a  manufacturer  in  the  United 
States  of  America  but  will  admit  that  after  all  the  place 
where  he  can  sell  his  goods  and  get  the  best  prices  for 
them  is  right  here  at  home  in  his  own  country.  We 
therefore  demand  opportunity,  and  if  our  desires  are 
heeded  and  if  this  conference  will  aid  in  pointing  the 
way  to  that  end  by  reducing  the  number  of  strikes  or  by 
making  lockouts  less  frequent,  our  meeting  shall  not 
have  been  held  in  vain.  (Applause.) 

MR.  EASLEY:  I  have  just  received  a  telegram  from 
Mr.  James  A.  Chambers,  President  of  the  American 
Glass  Company,  Pittsburg: 

"  I  regret  exceedingly  my  inability  to  be  with  you.  You  have  my 
best  wishes  for  the  final  success  of  your  noble  undertaking  and  can 
depend  upon  my  heartiest  co-operation.  I  know  of  no  cause  of 
more  vital  importance  to  good  government  and  that  promises  such 
universal  happiness  and  prosperity  to  the  nation  as  the  permanent 
establishment  of  a  proper  understanding  of  the  relationship  of 
capital  and  labor.  JAMES  A.  CHAMBERS." 

MR.  SARGENT:  Mr.  Chairman,  I  beg  the  indulgence 
of  yourself  and  your  honorable  body  to  present  a  motion : 
That  the  Chairman  of  this  meeting  appoint  an  executive 
committee  of  the  Industrial  Department  of  the  National 
Civic  Federation,  consisting  of  twelve  representatives  of 
the  employers  of  labor,  twelve  representing  employees  of 
labor,  and  twelve  representing  the  general  public  in- 


INDUSTRIAL  CONCILIATION.  85 

terests  of  the  country,  the  honorable  Chairman  to  be  a 
member  of  this  committee.     (Applause.) 
Motion  seconded  and  adopted. 

MR.  STRAUS:  Before  closing  this  session  I  wish  to  say 
there  is  a  very  modest  man  who  has  been  connected  with 
this  movement  who  has  labored  hard,  intelligently, 
wisely,  and  fairly  in  this  field,  who  deserves  a  vote  of 
thanks,  and  that  is  the  Secretary  of  the  National  Civic 
Federation,  Mr.  Ralph  M.  Easley.  (Applause.)  If 
Senator  Hanna  will  propose  that  motion,  I  will  be  glad 
to  put  it. 

SENATOR  HANNA:  Mr.  Chairman,  it  gives  me  great 
pleasure,  in  recognition  of  that  service,  to  offer  a  resolu- 
tion that  a  vote  of  thanks  be  tendered  to  Mr.  Easley, 
not  only  for  his  careful  work,  but  for  the  spirit  which  he 
has  shown  and  the  efforts  he  has  made  in  bringing  these 
elements  together.  I  have  been  with  him  somewhat  in 
the  council,  and  I  feel  that  to  him  more  than  to  any  one 
of  us  is  due  the  credit  of  this  meeting.  (Applause.) 

Motion  adopted. 

MR.  STRAUS:  I  shall  call  upon  one  other  gentleman 
before  closing  this  conference,  a  gentleman  to  whom 
those  of  us  who  were  here  yesterday  had  the  pleasure  of 
listening  for  a  few  moments,  whose  reputation  for  good 
work  and  for  this  work  is  known  throughout  the  land, 
who  has  come  here  from  a  distance  because  his  heart  is 
in  this  work.  I  refer  to  the  Most  Reverend  Archbishop 
John  Ireland.  (Applause.) 

ARCHBISHOP  IRELAND:  Mr.  Chairman  and  friends — 
May  the  winds  of  heaven  bear  across  continents  and 
oceans  the  news  that  in  the  great  city  of  New  York  there 
was  held  a  meeting  such  as  that  in  which  we  have  taken 


86  INDUSTRIAL   CONCILIATION. 

part.  A  meeting  such  as  this  is  the  honor  of  America, 
the  honor  of  humanity.  It  is  a  signal  omen  of  good  and 
great  things  for  the  world  of  men  during  Christianity's 
twentieth  century.  Of  the  twentieth  century  it  is  the 
ambition  that  the  holy  principles  of  brotherhood,  of 
charity,  and  of  justice,  announced  to  the  ages  by  the 
Saviour,  become  deeper  and  wider  realities  than  at  any 
previous  time  in  history.  Can  those  principles  of 
brotherhood,  of  charity,  and  of  justice  be  better  and 
more. clearly  realized  than  through  the  practical  applica- 
tion of  the  noble  and  beautiful  sentiments  that  have 
gone  forth  from  this  meeting  yesterday  and  to-day  ? 

Yes;  let  us  have  industrial  peace.  Let  men,  whether 
employers  or  workmen,  know  and  feel  that  they  are 
brothers.  Let  all  know  and  feel  that  every  man,  poorest 
or  richest,  is  a  child  of  God,  the  most  valued  thing  upon 
this  globe.  A  man,  whoever  he  be,  is  made  in  the  image 
and  the  likeness  of  the  Creator.  Henceforth  be  it  our 
earnest  strive  with  all  might  that  charity  and  justice 
toward  one  another  be  the  prevailing  life  of  our  great 
nation. 

In  the  addresses  which  I  heard  yesterday  and  to-day 
I  read  all  the  elements  of  hope  and  peace.  In  those 
addresses  there  is  the  recognition  of  the  vital  principles 
that  make  for  justice  and  for  charity.  Whatever  seem- 
ing divergencies  of  opinion  there  were  among  speakers 
were  divergencies  in  words  rather  than  in  principles. 
One  speaker  viewed  a  matter  under  one  aspect,  another 
under  another:  there  was  no  substantial  disagreement: 
with  explanations  both  would  have  been  in  fullest  har- 
mony. Such  divergencies  emphasize  the  importance  of 
employers  and  workmen  coming  together,  talking  to- 
gether, looking  into  the  minds  and  hearts  of  one  another. 


INDUSTRIAL   CONCILIATION.  8/ 

I  do  not  know  that  at  any  time  yet  in  the  industrial 
history  of  the  country  there  has  ever  been  a  gathering  so 
hopeful  as  ours, — a  gathering  at  which  men  representing 
capital,  men  representing  labor,  men  standing  before  the 
country  for  social  peace  and  for  the  happiness  of  all, 
did  together,  as  we  have  done,  shake  hands  and  say  to 
one  another,  Let  us^understand  one  another,  that  there 
may  be  between  us  good  will  and  harmony.  In  presence 
of  a  meeting  such  as  ours,  I  should  be  faithless  to 
humanity,  and  faithless  to  the  religious  sentiments  im- 
bedded in  the  hearts  of  all,  were  I  not  to  proclaim  that 
we  shall  surely  succeed  in  our  resolve  to  understand  one 
another,  to  bring  peace  and  good  will  into  the  counsels 
of  the  nation's  industries. 

Proud  am  I  to-day  of  America  and  of  the  democracy 
of  America;  hopeful  am  I  of  democracy's  lasting  triumph. 
This  is  true  democracy,  this  is  the  victory  of  democracy, 
that  in  the  name  of  the  manhood  of  the  country  we  are 
united  to  guard  the  rights  of  all  and  to  procure  the  social 
happiness  of  all. 

Name,  then,  Mr.  Chairman,  your  executive  commit- 
tee. Mention  thereon  no  one  whose  heart  does  not  thrill 
with  the  sentiments  of  justice  and  charity,  that  have  re- 
ceived in  our  meeting  such  noble  expressions.  And 
when  your  committee  is  named  and  its  members  enter 
upon  their  work,  may  they  not  forget  the  responsibility 
resting  upon  them:  the  responsibility  to  bring  justice  to 
all,  to  bring  peace  to  all,>  to  guard  the  weak  from  peril 
of  oppression,  to  guard  the  strong  from  the  yet  more  dire 
peril  of  allowing  even  a  shadow  of  oppression  to  spread 
over  their  fellow-men. 

Our  aspirations  and  our  hopes  are  blessed  by  the  great 
Lord  and  common  Father  of  all. 


88  INDUSTRIAL   CONCILIATION. 

MR.  STRAUS:  I  wish  to  announce  that  the  executive 
committee  will  be  appointed  to-night  or  between  this 
and  to-night,  and  that  they  will  be  called  together  to- 
morrow for  the  purpose  of  devising  and  perfecting  a  plan 
of  work  and  the  scope  of  work  which  they  will  under- 
take. 

And  now  I  declare  this  conference  adjourned. 

Adjourned. 


PART  II 

PAPERS    READ   AT   THE   CHICAGO  CONFER- 
ENCE, DEC.  17-18,  1900. 


OPENING    SPEECH   BY   MR.    FRANKLIN   MAC- 
VEAGH,  CHAIRMAN  OF  THE  CONFERENCE. 

IN  opening  the  meeting,  Chairman  MacVeagh  spoke  as 
follows : 

My  selection  as  chairman  of  this  conference  is  due  to 
the  recognition  of  a  third  party  to  the  dispute  between 
organized  labor  and  organized  capital.  There  is  a  great 
number  of  inoffensive  people  who  are  neither  organized 
workmen  nor  organized  capitalists,  and  who  have  the 
misfortune  in  all  conflicts  between  these  two  forces  to  be 
ground  between  the  upper  and  nether  millstones.  To 
this  third  estate  I  happen  to  belong.  We  constitute 
the  controlling  element  of  public  opinion,  and  public 
opinion  is  the  last  support  of  organized  capital  and 
organized  labor  and  of  all  other  organized  power  in  a 
free  nation. 

First,  in  calling  this  conference  to  order,  I  must  say  a 
word  of  congratulation  on  the  successful  launching  of 
the  National  Civic  Federation,  and  to  express  what  we 
all  feel,  that  this  new  organization  has  come  forward  to 
perform  duties  of  great  importance  to  the  welfare  and 
progress  of  America.  It  creates  a  national  forum  for 
the  great  issues  of  American  life,  where  they  may  be 
discussed  within  the  hearing  of  the  nation  on  a  platform 
uncommitted,  unpartisan,  and  unprejudiced,  and  with 
as  fair  a  prospect  as  discussion  can  have  of  aiding  an 
ultimate  solution.  We  have  plenty  of  discussion  from 
the  points  of  view  of  all  sorts  of  dogmatic  sets,  classes, 

91 


92  INDUSTRIAL   CONCILIATION. 

and  organizations,  but  until  now  there  has  been  no 
national  forum  where  all  leaders  could  meet  and  know 
each  other,  and  where  all  opinions  could  be  heard 
through  their  able  and  respected  advocates,  in  the  spirit 
and  under  conditions  of  frank  and  tolerant  discussion. 
And  while  recognizing  the  importance  of  this  new 
national  factor,  I  feel  it  is  a  great  pleasure  to  acknow- 
ledge that  we  owe  its  inception  and  organization  almost 
wholly  to  one  man,  its  secretary,  Mr.  Easley. 

I  am  glad  the  question  of  industrial  arbitration  has 
been  given  precedence  in  the  conference  the  Federation 
proposes  to  hold.  Nothing  is  more  pressing  than  a 
method  of  adjusting  the  differences  of  capital  and  labor. 
Nothing  more  immediately  or  profoundly  involves  vast 
American  interests.  We  are  confronted  just  now  by  a 
great  expansion  of  our  foreign  trade  and  by  a  new  vital- 
ity and  vigor  of  domestic  prosperity  and  development. 
We  can,  therefore,  ill  afford  to  wait  for  the  basis  of  in- 
dustrial peace  if  that  basis  is  possibly  to  be  found  now. 
Neither  the  working  men  nor  the  employers  nor  the  gen- 
eral public  can  afford  to  waste  time  in  half-thought-out 
theories,  policies,  and  practices  if  it  is  possible  to  hasten 
the  solution. 

I  shall  listen  with  great  interest  to  the  facts  and  the 
reasons  which  you  will  give  to  the  conference,  and  leave 
it  to  you  to  discuss  whether  compulsory  arbitration,  after 
the  New  Zealand  manner, — or  any  compulsory  arbitra- 
tion,— is  our  remedy;  whether  the  machinery  of  the 
boards  of  arbitration  under  favorable  appointment  and 
equipment  could  accomplish  the  purpose;  whether  the 
arbitrators  voluntarily  chosen  for  each  case  under  a  gen- 
eral custom  would  be  a  way  to  secure  peace,  and,  finally, 
whether  any  form  of  arbitration  can  be  made  a  solution 


INDUSTRIAL   CONCILIATION.  93 

of  the  troubles  and  losses  with  which  the  conflicts  of 
capital  and  labor  are  attended. 

It  has  long  been  assumed  that  some  form  of  arbitration 
is  the  goal  toward  which  all  solutions  of  these  problems 
must  of  necessity  advance.  I  believe  this  conference 
will  modify  that  time-honored  assumption.  Whether 
some  form  of  arbitration — that  is,  a  hearing  and  judg- 
ment by  wholly  disinterested  arbitrators  —  shall  be 
accepted  or  not  as  the  best  method  of  determining 
questions  between  employer  and  employee,  we  are  no 
longer  to  be  limited  to  the  consideration  of  arbitration 
in  seeking  our  remedy. 

The  old  method  of  solution  by  a  conference  of  the 
disagreeing  parties  themselves — always  regarded  as  the 
most  natural,  radical,  and  desirable,  if  practical — proved 
itself  incompetent  as  a  universal  expedient;  and  arbitra- 
tion became  to  most  of  us,  for  the  time  being,  the  only 
alternative.  Of  late,  however,  the  advance  of  organiza- 
tion among  both  employers  and  working  men,  and  espe- 
cially the  increasing  prevalence  of  national  organization, 
has  made  it  possible  in  some  cases,  at  least,  to  resume 
the  practice  of  settlement  by  conference  of  the  interested 
parties  themselves  through  national  conferences,  fully 
representative  of  the  interests  of  the  disputing  parties, 
but  removed  a  stage  or  two  from  the  immediate  heat  of 
the  dispute.  One  can  see  in  this  substitute  for  arbi- 
tration the  elimination  of  the  disinterestedness  of  the 
arbitrator,  but  at  the  same  time  the  elimination  of  his 
unfamiliarity  with  the  complexities,  technicalities,  and 
the  national  or  general  importance  and  significance  of  the 
questions  involved,  and  the  elimination  equally  of  his 
rather  helpless  and  hopeless  inclination  to  "split  the 
difference. ' ' 


94  INDUSTRIAL  CONCILIATION. 

Introduction  of  these  new  experiments  and  theories 
into  the  field  of  discussion  will  add  freshness  and  interest 
to  the  proceedings  of  the  conference,  and  possibly 
broaden  the  prospect  of  favorable  results.  Adoption  of 
a  successful  method  of  settling  economic  disagreements 
between  capital  and  labor  without  strife  would  have  great 
influence  on  the  material  progress  of  the  nation;  but 
it  would  have  also  a  far-reaching  influence  on  the  de- 
velopment of  the  nation's  civilization,  and  therein  lies, 
after  all,  its  chief  significance  and  value. 

I  know  that  a  deep  chasm  seems  to  many  to  exist  be- 
tween labor  and  capital  as  the  result  of  past  industrial 
and  social  conditions.  Many  think  this  chasm,  like 
chasms  in  nature,  is  the  slow  work  of  centuries  and  can- 
not be  filled  or  bridged,  and  that  a  new  social  and 
economic  world  is  the  only  remedy.  With  apparently 
incurable  strife  between  labor  and  capital  always  before 
the  mind  and  the  persistent  and  loud  noise  of  the  strife 
always  in  the  ears,  it  is  not  a  wonder  that  men  should 
believe  there  is  something  fundamentally  and  helplessly 
out  of  joint  in  industrial  relations.  And  then,  to  increase 
one's  confusion  of  mind,  vast  and  unassimilated  new 
features  have  appeared  in  these  industrial  relations,  as 
for  example  the  great  aggregations  of  capital  in  corpora- 
tions and  individual  men. 

But  what  a  passing  makeshift  arbitration  would  be  if 
the  interests  of  capital  and  labor  really  were  irreconcil- 
able— fundamentally  irreconcilable.  What  a  depressing 
outlook  for  most  of  us  if  there  were  no  prospect  for  real 
industrial  or  social  unity  under  our  present  political, 
industrial,  and  social  systems!  To  my  mind  this  great 
chasm  is  an  effect  of  the  imagination,  to  be  regretted  and 
always  to  be  combated.  The  result  of  any  customary 


INDUSTRIAL   CONCILIATION.  95 

rational,  peaceful  adjustment  of  industrial  disputes  will 
be  to  discredit  this  imaginary  chasm — especially  if  it 
should  be  found  possible  to  adjust  such  disputes  without 
the  aid  of  any  outside  person  or  authority. 

No  industrial  or  social  system  can  make  real  classes, 
and  without  real  classes  there  can  be  no  industrial  or 
social  chasms.  Democracy,  with  its  beliefs  and  its  in- 
stitutions, is  the  one  irresistible,  the  one  wholly  progres- 
sive social  force  of  modern  life;  and  it  will  prevail  more 
and  more,  so  far  at  least  as  any  man  of  the  present  can 
look  forward  into  the  future.  All  the  centuries  have 
been  preparing  for  it — preparing  for  democracy  and  not 
preparing  chasms  at  all.  Democracy  has  not  fully  real- 
ized itself  yet,  it  is  true,  but  it  will  never  take  a  per- 
manent backward  step,  for  it  cannot.  It  is  not  among 
the  conceivable  possibilities  of  our  era  that  it  should. 
Then  why  waste  thought  on  chasms  and  classes  ?  Not 
but  that  there  are  enough  barriers  between  capital  and 
labor — between  employers  and  workmen.  Not  but  that 
there  are  enough  distinctions  between  rich  and  poor — 
enough  and  to  spare.  But  if  we  find  a  way — before  long 
we  are  sure  to  find  a  way — for  capital  and  labor  to  live 
in  peace,  a  step  will  be  made  toward  that  habitual  nor- 
mal sense  of  social  solidarity  which  is  the  foundation 
stone  of  democracy. 

Much  of  the  dividing  line  between  the  employer  and 
employed  is  fading  out  even  while  we  think  it  is  so  deep 
and  permanent.  For  instance,  the  greatest  strikes  of 
the  present  day  are  not  between  the  capitalists  and 
laborers  at  all;  they  are  between  employees  and  em- 
ployees— between  working  men  called  managers  or  super- 
intendents and  working  men  called  working  men — strikes 
with  which  capitalists  have  nothing  to  do  except  to  take 


g6  INDUSTRIAL   CONCILIATION. 

their  punishment  and  loss.  There  are  still  some  indus- 
trial disputes  in  which  the  capitalists  themselves  are  one 
of  the  two  parties,  as  in  strikes  of  building  trades, 
though  even  there  the  important  capital  in  the  case  is 
not  that  of  the  contractor,  but  that  of  the  owner  of  the 
building,  who  usually  is  a  helpless  sufferer  and  hanger- 
on  entitled  to  the  sympathy  of  all  charitable  hearts.  But 
the  greater  strikes  and  lockouts — such  as  those  on  rail- 
roads or  in  coal  mines — are  the  contentions  of  two  sets 
of  employees  or  of  two  sets  of  wage-earners,  and  the 
stockholders,  the  capitalists — in  many  cases  women  and 
children  and  savings-banks — generally  are  more  helpless 
and  suffering  than  the  general  public  itself. 

As  an  instance,  on  the  other  hand,  of  the  widening  of 
the  capitalist  class,  take  the  vast  tendency  of  recent 
times  toward  corporate  methods  in  business — the  substi- 
tution of  the  corporation  for  the  individual  business  man, 
the  wide  introduction  of  the  share  form  of  capital,  and 
the  further  tendency  to  make  the  shares  small  enough 
for  investors  of  every  size.  The  irresistible  tendency  to- 
ward this  capitalistic  evolution  or  revolution  is  destroy- 
ing the  exclusiveness  of  capital  and  is  making  the  world 
of  the  capitalist  as  large  as  the  nation  itself.  Almost 
every  man  with  the  single  virtue  of  frugality  may  be  a 
capitalist,  and  when  America  shall  be  wise  enough  to  take 
the  point  of  view  that  legalized  corporations  are  neces- 
sarily for  all  the  people  and  then  shall  see  to  it  that  they 
are  both  organized  and  administered  for  the  people,  and 
under  the  clear  eye  of  public  authority,  as  the  national 
banks  already  are,  then  with  great  strides  the  hostile  dis- 
tinctions between  capital  and  labor  will  become  more 
meaningless. 

Nor  is  it  certain  that  the  great  wealth  of  individuals 


INDUSTRIAL   CONCILIATION.  97 

will  arouse,  as  many  predict,  increasing  unfriendliness 
in  the  general  community.  This  unfriendliness  is  due 
to  the  sense  of  the  unfairness  and  the  injustice  of  the  op- 
portunities afforded  certain  classes  of  men  and  to  the 
overbearing  uses  and  the  useless  uses  so  often  made  of 
wealth.  But  these  objections  are  not  permanent  in  any 
large  contemplation  of  the  subject.  In  the  first  place, 
there  is  the  prospect  that  we  shall  learn  how  to  protect 
the  community  against  those  unfair  and  unrighteous 
manipulations  of  capital  that  take  from  the  many,  by 
processes  of  merely  shrewd  or  unscrupulous  promotion 
or  combination,  to  pile  up  for  a  few.  Again,  there  is  a 
growing  prospect  that  our  laws  and  our  government  will 
soon  become  satisfied  with  what  they  have  done  to  build 
up  excessive  or  undeserved  fortunes.  And  it  is  evident 
that  more  and  more  large  amounts  of  excessive  wealth 
will  find  their  way  by  gifts  into  the  public  and  beneficent 
uses  of  the  nation,  and  if  not  by  gift,  then  by  reasonable 
taxation. 

Finally,  the  greed  of  wealth  itself,  the  ambition  for  ex- 
treme and  unrequired  wealth,  promises  to  undo  itself,  as 
any  form  of  greed  is  likely  to  do.  More  money  than  a 
man  really  needs  requires  distinction  to  make  it  desira- 
ble. Formerly  wealth  was  generally  distinguished.  It 
was  associated  mainly  with  personal  distinction  and  made 
to  support  and  maintain  personal  distinction.  It  also 
was  not  easy  to  get,  and  therefore  it  was  more  to  be  de- 
sired and  it  conferred  greater  honor.  Of  late,  it  has 
become  so  much  easier  to  obtain  and  is  so  frequently 
associated  with  commonplace  or  objectionable  qualities, 
that  one  may  look  forward  to  the  time  when  wealth  will 
not  necessarily  confer  either  distinction  or  honor.  I 
need  to  add  only  that  the  normal  disposition  to  honor 


98  INDUSTRIAL   CONCILIATION. 

and  envy  rich  men  is  being  strained  to  the  breaking- 
point,  even  at  present,  by  the  disappointing  and  dis- 
heartening quality  of  the  latest  corps  of  rich  men,  who 
seem  to  be  coming,  with  a  new  impartiality  and  rotation, 
from  the  lower  classes  of  the  business  world. 

Wherever  we  look  we  find  evidences  that  there  are  no 
permanent  or  deep  divisions  in  our  citizenship  and  that 
what  lines  of  demarkation  do  exist  are  not  growing  more, 
but  less,  defined.  This  conference  is  not  engaged  ex- 
clusively, therefore,  in  the  alleviation  of  an  immediate 
strain  in  the  relation  between  capital  and  labor.  It  is  in 
a  larger  field  than  that.  It  is  working  for  immediate  re- 
lief, but  along  lines  that  will  bring  the  greater  and  final 
relief  of  a  friendly,  undivided,  and  homogeneous  indus- 
trial commonwealth. 


TRADE   BOARDS    OF   CONCILIATION   AND 
ARBITRATION   ABROAD. 

BY     CARROLL     D.      WRIGHT,      UNITED      STATES      COMMIS- 
SIONER  OF    LABOR. 

IT  is  my  purpose  at  this  time,  in  accordance  with  the 
suggestion  of  the  Secretary  of  the  National  Civic 
Federation,  to  confine  my  address  to  some  of  the  latest 
attempts  in  Europe  to  adjust  industrial  difficulties 
through  the  efforts  of  voluntary  trade  boards  of  con- 
ciliation and  arbitration,  that  is,  private  boards  that  are 
established  by  employers  and  employees  voluntarily,  the 
members  of  the  boards  being  selected  from  the  em- 
ployers and  the  employees.  The  moral  principle  lying 
back  of  the  establishment  of  such  boards  is  one  which 
should  be  recognized  at  the  outset.  It  is  not  new,  nor 
does  it  contain  any  revolutionary  elements.  The  pro- 
phet Isaiah,  a  citizen  of  Jerusalem,  and  a  man  who  was 
considered  in  his  day  of  great  importance  by  his  neigh- 
bors, became  alarmed  at  what  he  thought  an  impending 
national  calamity.  He  therefore  undertook  to  point  out 
to  the  citizens  of  Jerusalem  their  particular  sins  of  omis- 
sion and  commission,  the  wrongs  which  had  been  done, 
and  to  prophesy  to  them  the  results  of  their  actions. 
When  he  had  made  a  strong  arraignment  he  said: 
"Come,  now,  and  let  us  reason  together."  This  was 
about  750  years  before  Christ.  The  great  prophet  knew 

99 


100  INDUSTRIAL   CONCILIATION. 

that  by  reasoning  together  people  could  come  to  see  more 
clearly  than  by  any  other  method  the  real  dangers  which 
confronted  them.  There  would  be  a  comparison  of 
views,  a  free  discussion  of  suggestions  relating  to  reme- 
dies, and  out  of  the  reasoning  together  Isaiah  hoped  to 
bring  better  conditions.  This  is  the  crucial  point  of 
conciliation,  and  the  experience  of  some  European 
countries  that  have  had  the  best  results  has  been  along 
the  very  line  laid  down  by  Isaiah,  and  has  led  to  the 
most  peaceful  and  satisfactory  conditions  so  far  as  the 
relations  of  employer  and  employee  are  concerned. 
They  have  reasoned  together,  and  thus  by  reasoning 
have  conciliated  each  other,  and  so  avoided  an  open 
issue  and  hence  the  necessity  for  any  arbitration.  Arbi- 
tration can  have  no  place  when  conciliation  is  success- 
ful, and  conciliation  should  be  the  very  first  resort  of  all 
disputants,  whether  in  industrial  or  other  affairs.  Fail- 
ing this  moral  method,  a  board  of  arbitration  then  be- 
comes a  reasonable  resort  of  disputants. 

In  my  treatment  of  this  subject  I  shall  make  no  attempt 
at  originality,  even  in  the  form  of  expression.  I  shall  use 
the  statements  which  have  appeared  in  my  own  official 
reports,  for  which  I  need  not  give  credit,  and  shall  not 
hesitate  to  take  statements  from  other  official  documents 
wherever  necessary,  for  my  purpose  is  to  be  as  brief  as 
possible  in  the  hour  allotted  me,  and  at  the  same  time 
to  indicate  what  appear  more  and  more  to  me  to  be  the 
true  methods  of  adjusting  industrial  disputes.  I  have 
therefore  drawn  freely  from  well-known  official  docu- 
ments.1 

1  For  valuable  information  relative  to  the  extension  and  working 
of  voluntary  or  private  trade  boards  of  conciliation  and  arbitration 
abroad,  see  reports  on  industrial  conciliation  and  arbitration  pub- 


INDUSTRIAL  CONCILIATION.  101 

The  application  of  the  old  biblical  doctrine  of  reason- 
ing together  in  industrial  matters  was  first  applied  in 
France,  and  it  is  interesting,  both  from  a  moral  and  a 
historical  point  of  view,  to  understand  the  real  basis  of 
the  modern  voluntary  trade  boards  of  conciliation  and 
arbitration.  We  shall  then  understand  more  clearly  the 
evolution  of  those  boards  which  now  exist  and  which  are 
accomplishing  so  much.  Speaking  broadly,  it  may  be 
said  that  industrial  conciliation  and  arbitration  were 
recognized  originally  as  methods  of  settling  industrial 
disputes  early  in  the  present  century  in  France.  Trade 
guilds  had  existed  in  that  country,  and  trade  matters 
had  been  regulated  by  them,  instances  of  such  regulation 
running  back  to  the  Middle  Ages.  The  guilds  were 
abolished,  however,  during  the  reign  of  Louis  XVI.  In 
1806,  after  some  years  of  unsatisfactory  legislation,  the 
working  men  of  Lyons  made  a  request  upon  the  govern- 
ment, and  the  first  Napoleon,  in  accordance  therewith, 
established  courts  of  arbitration  and  conciliation.  These 
early  and  simple  courts  have  been  continued  until  the 
present  time  under  the  title  of  "Conseils  des  PrucT- 
hommes,"  or  councils  of  experts.  These  councils  are 
practically  judicial  tribunals,  constituted  under  and  by 
the  authority  of  the  Minister  of  Commerce,  but  through 

lishedby  the  Massachusetts  Bureau  of  Statistics  of  Labor  in  1881  ; 
Dr.  E.  R.  L.  Gould's  paper  at  the  Congress  of  Industrial  Concilia- 
tion and  Arbitration  held  in  Chicago  November  13-14.  l894  5  the 
reports  of  the  Royal  Commission  on  Labor  (British),  especially  the 
volumes  on  France,  Germany,  Switzerland,  and  Italy  ;  Mr.  Joseph 
D.  Weeks's  reports,  especially  his  address  at  the  Chicago  conference 
in  1894  ;  Mr.  John  B.  McPherson's  report  (with  rules  and  regula- 
tions), on  "  Voluntary  Conciliation  and  Arbitration  in  Great  Britain," 
published  in  the  Bulletin  of  the  U.  S.  Department  of  Labor,  No.  28, 
May,  1900  ;  and  the  Encyclopedia  of  Social  Reform. 


102  INDUSTRIAL   CONCILIATION. 

the  local  Chambers  of  Commerce.  It  is  their  composi- 
tion that  chiefly  interests  us  at  this  time.  They  are  made 
up  of  an  equal  number  of  employers  and  working  men 
members,  each  class  electing  its  own  representatives,  but 
with  a  president  and  vice-president  named  by  the  govern- 
ment. The  authority  of  the  councils  of  experts  extends 
to  every  conceivable  question  that  can  arise  in  the  work- 
shop, not  only  between  the  workman  and  his  employer, 
but  between  the  workman  and  his  apprentice  or  his  fore- 
man. They  cannot,  however,  settle  future  rates  of 
wages,  this  being  done  only  by  mutual  agreement. 
When  the  dispute  comes  to  a  direct  issue  arbitration  is 
compulsory  upon  the  application  of  either  side,  and  the 
courts  can  enforce  the  decisions  of  the  board  of  arbitra- 
tion in  the  same  manner  that  the  decrees  of  any  court  of 
law  are  enforced. 

It  is  especially  in  the  stages  of  conciliation  that  the 
workings  of  these  courts  have  been  beneficial  to  French 
industry.  Probably  more  than  ninety  per  cent,  of  all 
cases  brought  before  them  have  been  settled.  The 
statistics  in  relation  to  the  settlement  of  disputes  give 
a  most  satisfactory  showing,  but  fall  far  short  of  giving 
full  expression  to  the  great  benefit  which  they  have 
been  to  French  industry,  especially  in  removing  causes 
of  differences  and  in  preventing  them  from  growing  into 
open  disputes.  M.  Chevalier,  in  speaking  of  their  ser- 
vices to  French  industry,  enthusiastically  exclaimed  that 
they  constitute  one  of  the  noblest  creations  with  which 
this  century  is  honored.  They  contain  the  germs  of  the 
private  boards  of  conciliation  and  arbitration,  and  their 
experience  has  always  been  referred  to  as  an  unanswer- 
able argument  for  the  creation  of  such  boards. 

Similar  tribunals  exist  in  Belgium,  but  their  experience 


INDUSTRIAL   CONCILIATION.  103 

has  not  been  so  thoroughly  marked  by  the  success  that 
has  accompanied  those  in  France.  This  may  be  in  some 
measure  due  to  the  fact  that  the  Belgian  boards  have  in 
some  cases  criminal  jurisdiction. 

A  law  having  some  of  the  elements  of  the  French  law, 
and  probably  framed  from  it,  was  placed  on  the  statute 
books  in  the  reign  of  George  IV.,  in  1824,  but  it  re- 
mained practically  a  dead  letter.  England  did  not 
possess  the  organizations  necessary  to  its  successful 
workings,  and  both  employer  and  employed  objected 
seriously  to  its  compulsory  features.  Mr.  Rupert  Kettle, 
one  of  the  champions  of  industrial  conciliation  and  arbi- 
tration, did  not  hesitate  to  say,  referring  to  it,  that  "It 
is  agreed  that,  according  to  the  spirit  of  our  laws  and 
the  freedom  of  our  people,  any  procedure,  to  be  popu- 
lar, must  be  accepted  voluntarily  by  both  contending 
parties  "  ;  and  it  is  true  that  the  experience  of  the  British 
people,  so  far  as  their  history  of  conciliation  and  arbitra- 
tion is  concerned,  fully  justifies  Mr.  Kettle's  opinion. 
So  much  for  the  foundation  principles,  both  morally  and 
practically,  of  the  modern  method  of  conciliation  and 
arbitration  prevailing  largely  in  England  and  to  some 
extent  in  other  countries. 

The  manufacturers  and  working  men  of  England  long 
ago  recognized  the  disastrous  results  of  industrial  wars 
and  their  futility,  and  they  set  themselves  to  originate 
ways  to  avoid,  if  possible,  trade  disputes,  and,  if  the 
avoidance  were  found  impossible,  to  try  some  method  of 
arbitrating  and  settling  them  in  peaceful  ways.  They 
grew  tired  after  many  years  of  the  destructive  methods 
that  had  been  in  vogue;  that  is,  great  strikes  lasting  for 
many  weeks,  long-continued  contests  between  capital 
and  labor,  resulting  in  great  loss  and  suffering.  They 


104  INDUSTRIAL   CONCILIATION. 

were  tired,  too,  of  jealousies  and  vindictiveness,  and 
from  1860  on,  and  even  beginning  at  an  earlier  date,  the 
doctrines  of  conciliation  and  arbitration  have  been  tak- 
ing deep  root,  until  at  present  there  are  very  few  trades 
and  hardly  a  trade  centre  in  England  which  has  not  its 
boards  and  committees  organized  to  bring  quiet  and 
contentment,  or  at  least  to  reduce  the  discontent,  to  both 
masters  and  men.  And  these  efforts  are  independent  of 
law. 

In  addition  to  the  legislation  just  referred  to,  England 
in  1837  amended  her  Act  of  1824,  which  provided  for 
compulsory  arbitration,  making  resort  to  the  boards 
somewhat  voluntary,  but  where  an  agreement  could  not 
be  reached  reference  was  made  to  the  appointing  magis- 
trate, that  is,  the  magistrate  appointing  the  board.  In 
1867  another  measure,  known  as  the  Councils  of  Con- 
ciliation Act,  was  passed,  by  which  it  was  meant  to  ex- 
tend voluntary  arbitration  provided  that  any  number  of 
employers  and  workmen  in  a  particular  trade  might  agree 
to  create  a  council  of  conciliation  or  arbitration,  but 
when  created  it  should  be  licensed  by  the  government  to 
exercise  all  the  powers  permitted  by  the  compulsory  act 
of  1824.  In  1872  the  Masters  and  Workmen  Arbitration 
Act  was  passed.  This  provided  for  an  option  to  both 
parties  between  a  board,  a  council,  and  standing  arbi- 
trators. The  latest  act  is  that  of  1896,  which  repeals 
the  acts  of  1824,  1867,  and  1872.  This  latest  statute  is 
entitled  "An  Act  to  make  better  provision  for  the  pre- 
vention and  settlement  of  trade  disputes."  It  provides 
for  the  registration  by  the  Board  of  Trade  of  any  board 
established  for  the  purpose  of  settling  disputes  between 
employers  and  workmen,  and  contains  provisions  regard- 
ing the  settlement  of  such  disputes.  Boards  under  it 


INDUSTRIAL   CONCILIATION.  10$ 

may  inquire  into  the  causes  and  circumstances  of  the 
difference,  may  take  steps  for  the  purpose  of  enabling 
the  parties  to  the  difference  to  meet  together,  by  them- 
selves or  their  representatives,  and  on  the  application  of 
employers  or  workmen  may  appoint  a  person  or  persons 
to  act  as  conciliator  or  as  a  board  of  conciliation.  Such 
boards  may  also,  on  the  application  of  both  parties,  ap- 
point an  arbitrator. 

I  refer  to  this  legislation  on  the  part  of  England  simply 
to  show  one  of  the  elements  of  the  evolution  of  their  par- 
ticular kind  of  industrial  conciliation  and  arbitration,  for 
all  the  legislative  attempts  in  England  have  been  failures, 
some  of  them  abject  failures;  but  that  method  we  are 
dealing  with,  on  the  other  hand,  has  had  a  thoroughly 
honorable  and  satisfactory  history,  which  begins  in  1860 
or  thereabouts.  Previous  to  that  year,  which  must  be 
considered  as  marking  an  epoch  in  the  history  of  in- 
dustrial conciliation  and  arbitration  in  England,  there 
had  been  frequent  attempts  at  the  settlement  of  industrial 
disputes.  Legal  sanctions,  however,  were  never  sought 
for  the  awards.  They  were  loyally  accepted  without 
any  constraint,  except  a  man's  sense  of  honor  and  a  cer- 
tain esprit  de  corps  both  among  the  employers  and  em- 
ployed; and  these  voluntary  attempts  were  not  only 
frequent  but  were  used  in  some  trades  systematically, 
especially  in  the  pottery  trade,  one  of  the  most  difficult 
in  which  to  harmonize  the  conflicting  views  of  capital 
and  labor,  by  reason  of  the  large  number  of  trades  into 
which  labor  is  divided  and  some  peculiar  customs  which 
have  been  regarded  as  invested  rights.  Yet  in  this  trade 
there  has  not  been  a  general  strike  since  1836,  and  those 
interested  in  it  do  not  hesitate  to  give  the  reason  for  such 
a  long  period  of  industrial  peace  as  the  settlement  of 


106  INDUSTRIAL   CONCILIATION. 

disputes  by  voluntary  arbitration.  Their  contracts  for 
hiring  contain  a  clause  providing  that  "If  any  dispute 
arise  between  the  parties  as  to  the  price  or  wages  to  be 
paid,  by  virtue  of  such  an  agreement,  the  dispute  shall 
be  referred  to  an  arbitration  board  of  six  persons,  to 
consist  of  three  manufacturers,  chosen  by  the  masters, 
and  three  working  potters,  elected  by  the  working  men." 
This  clause  has  prevented  strikes  in  the  pottery  trade  for 
many  years. 

These  efforts  in  the  pottery  and  other  trades  were 
desultory  and  preliminary  to  the  real  history  and  success 
of  the  private  conciliation  and  arbitration  movement  in 
England  prior  to  1860.  The  principle  was  often  ap- 
pealed to  in  many  trades,  though  in  none  does  it  appear 
to  have  worked  as  well  or  even  to  have  been  tried  so  con- 
tinuously as  in  the  pottery  trade.  As  the  result  of  the 
trials  there  had  grown  up,  especially  among  the  work- 
people, a  very  decided  feeling  in  favor  of  industrial 
arbitration  and  a  willingness  to  at  least  give  it  a  trial, 
and  this  willingness  doubtless  rendered  the  attempts  to 
establish  it  as  a  principle  much  surer  of  success. 

It  was  late  in  the  year  1860  when,  mainly  through  the 
efforts  of  Mr.  A.  J.  Mundella,  the  first  permanent  or  con- 
tinuous board  of  arbitration  and  conciliation  in  England 
was  established.  This  was  in  the  hosiery  and  glove  trade 
at  Nottingham.  The  distinguishing  feature  of  Mr.  Mun- 
della's  board,  or,  rather,  the  board  organized  by  his 
efforts,  and  at  the  same  time  the  peculiar  characteristic 
of  arbitration  since  1860,  lies  in  the  fact  that  it  is  sys- 
tematic conciliation  and  arbitration  organized  on  a 
purely  voluntary  basis,  without  an  appeal  to  legal  pro- 
cesses, even  to  enforce  its  decisions.  Its  novelty,  there- 
fore, is  not  that  it  is  systematic,  for  the  French  Conscils 


INDUSTRIAL  CONCILIATION.  107 

ftfs  PnuThommcs  were  that,  but  that  it  is  both  systematic 
and  voluntary,  and  the  French  boards  were  not. 

I  need  not,  of  course,  in  this  presence  spend  much  time 
in  showing  the  difference  between  conciliation  and  arbi- 
tration. Arbitration  is  a  generic  word,  and  the  one  more 
commonly  and  popularly  used  in  referring  to  the  settle- 
ment of  disputes.  Arbitration  must  be  carried  on  in  a 
formal  manner;  it  deals  with  the  larger  questions  of 
trade.  Conciliation  is  not  formal.  It  does  not  attempt 
to  sit  in  judgment  and  decide  in  a  given  case  what  is 
right  and  what  is  wrong,  but  its  efforts  are  directed  in  a 
friendly  spirit  to  the  adjustment  of  differences  by  indu- 
cing the  parties  to  agree  among  themselves.  Each  says 
to  the  other,  *'  Come,  let  us  reason  together,"  and  con- 
ciliation removes  causes  of  dissensions  and  prevents 
differences  from  becoming  disputes  by  establishing  a 
cordial  feeling  between  those  who  may  be  parties  to  the 
same.  Briefly,  then,  it  may  be  said  that  conciliation  is 
informal  arbitration,  and  that  arbitration,  on  the  other 
hand,  is  formal;  it  sits  in  judgment. 

It  is  the  preventive  feature  which  gives  conciliation  a 
value  beyond  estimation.  It  involves  the  moral  attitude 
of  the  two  parties,  or  rather  the  ability  of  each  morally 
to  consider  the  attitude  of  the  other.  Probably  the 
very  essence  of  its  strength  lies  in  the  fact  that  arbitration 
is  back  of  it,  or,  at  least,  that  arbitration  may  be  resorted 
to  provided  conciliation  fails  to  effect  its  purpose;  be- 
cause, ultimately,  where  parties  cannot  reason  together 
there  must  be  the  power  to  determine,  and  where  that 
power  is  voluntarily  given  to  the  representatives  of  each 
party  involved  it  becomes  arbitration,  and  arbitration  can 
accomplish  at  certain  points  in  the  dispute  what  con- 
ciliation is  powerless  to  bring  about. 


108  INDUSTRIAL   CONCILIATION. 

Reasoning  along  these  lines,  the  Nottingham  system 
of  arbitration  and  conciliation,  the  first  great  systematic 
effort,  becomes  historic.  Mr.  Mundella  was  connected 
with  the  hosiery  and  glove  trade,  which  is  one  of  the 
most  localized  in  Great  Britain,  being  carried  on  only  in 
the  immediate  vicinity  of  Nottingham,  Nottinghamshire, 
Derbyshire,  and  Leicestershire.  Here,  then,  was  a  con- 
centration of  one  class  of  skilled  labor,  the  concentration 
naturally  and  logically  leading  to  union.  Prior  to  1860 
the  relations  between  the  employers  and  the  employees 
in  these  trades  were  about  as  uncomfortable  and  even 
ugly  as  could  well  be  imagined.  From  1710  to  1820 
there  was  a  frightful  list  of  murders,  riots,  arson,  and 
machine-breaking  recorded,  all  growing  out  of  the  differ- 
ences which  arose  from  time  to  time.  Machine-breaking 
was  punishable  by  death  under  a  law  passed  early  in  this 
century,  and  in  1816  six  persons  paid  the  penalty.  After 
that,  while  the  worse  features  of  industrial  strife  disap- 
peared in  a  large  measure,  the  relations  were  in  no  wise 
improved,  and  the  strife  assumed  various  forms.  Sus- 
picion, lack  of  confidence,  hatred — all  the  things  that 
lead  to  industrial  warfare — existed.  There  was  also  arro- 
gance, oppression,  and  a  strong  hatred  on  the  part  of  the 
employers.  Strikes  and  lockouts  were  constantly  occur- 
ring, and  no  judicious,  effective  effort  was  made  to  end 
them,  nor  was  there  any  honest  effort  made  to  secure 
peace.  In  1860  there  were  three  strikes  in  one  of  the 
three  branches  into  which  the  hosiery  trade  is  divided, 
one  of  the  strikes  lasting  eleven  weeks,  and  it  was  dur- 
ing this  strike  that  the  board  of  arbitration  and  con- 
ciliation was  formed.  Though  the  strike  was  confined 
to  one  branch,  it  was  soon  discovered  that  it  was  sup- 
ported by  the  working  men  in  the  other  branches,  and, 


INDUSTRIAL   CONCILIATION.  109 

in  what  they  considered  self-defence,  it  was  proposed  by 
the  employers  to  lock  out  the  entire  body  of  working  men 
in  all  branches.  Some  of  the  employers,  Mr.  Mundella 
among  them,  shrank  from  the  misery  and  suffering,  and 
perhaps  even  crime,  that  would  be  the  result.  Some  of 
them  thought  they  might  devise  some  better  means  of 
settling  the  difficulty.  They  had  heard  of  the  French 
experiments  in  the  early  part  of  the  century,  and  so  Mr. 
Mundella  says  that  he  and  one  or  two  others  built  up  a 
scheme  in  their  imagination  of  what  they  thought  might 
be  done  to  get  a  good  understanding  with  their  men  and 
to  regulate  wages.  At  a  meeting  of  the  manufacturers  a 
committee  of  three  was  appointed  to  invite  the  workmen 
to  a  conference,  which  invitation  was  accepted.  Mr. 
Mundella  briefly  tells  the  story: 

"  We  three  met  perhaps  a  dozen  leaders  of  the  trades-union  ;  and 
we  consulted  with  these  men,  told  them  that  the  present  plan  was  a 
bad  one,  that  it  seemed  to  us  that  they  took  every  advantage  of  us 
when  we  had  a  demand,  and  we  took  every  advantage  of  them  when 
trade  was  bad,  and  it  was  a  system  mutually  predatory.  And  there 
is  no  doubt  that  it  was  so  :  we  pressed  down  the  price  as  low  as  we 
could,  and  they  pressed  up  the  price  as  high  as  they  could.  This 
often  caused  a  strike  in  pressing  it  down,  and  a  strike  in  getting  it 
up  ;  and  these  strikes  were  most  ruinous  and  injurious  to  all  parties, 
because,  when  we  might  have  been  supplying  our  customers,  our 
machinery  was  idle  ;  and  we  suggested  whether  we  could  not  try 
some  better  scheme.  Well,  the  men  were  very  suspicious  at  first ; 
indeed,  it  is  impossible  to  describe  to  you  how  suspiciously  we  looked 
at  each  other.  Some  of  the  manufacturers  also  deprecated  our  pro- 
ceedings, and  said  that  we  were  degrading  them,  and  humiliating 
them,  and  so  on.  However,  we  had  some  ideas  of  our  own,  and  we 
went  on  with  them  ;  and  we  sketched  out  what  we  called  a  Board  of 
Arbitration  and  Conciliation." 

The  result  of  the  conference  was  the  organization  of 
"The  Board  of  Arbitration  and  Conciliation  in  the 


1 10  INDUSTRIAL   CONCILIATION. 

Glove  and  Hosiery  Trade."  This  was  the  first  per- 
manent board  established.  Very  simple  rules  were 
adopted,  and  they  have  worked  so  well  in  most  particu- 
lars that  they  have  hardly  been  amended  since  the  day 
the  board  was  created.  The  object  of  the  board  is  de- 
clared to  be  to  arbitrate  on  any  question  of  wages  that 
may  be  referred  to  it,  and  to  endeavor  by  conciliatory 
means  to  put  an  end  to  any  disputes  that  may  arise. 
The  board  consists  of  twenty-two  members,  half  opera- 
tives and  half  manufacturers,  elected  for  one  year,  each 
class  electing  its  own  representatives.  The  delegates 
have  full  powers,  and  the  decisions  of  the  board  are  con- 
sidered binding  upon  all.  There  is  a  provision  for  a 
committee  of  inquiry,  to  whom  all  differences  must  be 
referred  before  the  board  will  act  upon  them.  This 
committee  has  no  power  to  make  an  award,  but  acts 
only  as  conciliator.  A  month's  notice  is  to  be  given  to 
the  secretaries  before  any  change  in  the  rate  of  wages 
will  be  considered. 

The  workings  of  this  board  are  very  interesting.  The 
original  plan  had  some  faults,  which  were  corrected 
later  on  and  by  the  creation  of  boards  in  other  trades; 
but  the  experience  of  the  hosiery  and  glove  trade  was 
so  satisfactory  that  others  followed  its  example  and  some 
three  years  later  the  building  trades  of  Wolverhampton 
adopted  a  system  of  arbitration,  differing,  however,  in 
some  essential  particulars  from  the  Nottingham  board. 
It  is  interesting  to  know  that  the  Wolverhampton  plan 
was  worked  out  without  any  knowledge  on  the  part  of 
its  chief  promoter  of  what  had  been  done  at  Nottingham, 
except  the  general  information  of  the  success  there. 
This  attempt  avoided  some  of  the  errors  of  the  Notting- 
ham plan,  but  it  lacked  some  of  its  admirable  features, 


INDUSTRIAL   CONCILIATION.  Ill 

and  necessarily  so,  because  the  building  trades  are  pe- 
culiarly liable  to  industrial  disputes,  over  customs  and 
some  other  things,  as  well  as  wages,  that  do  not  come 
into  the  trades  devoted  to  the  production  of  goods. 

Prior  to  1864  the  building  trades  of  Wolverhampton 
were  involved  in  many  strikes  seriously  interfering  with 
the  business  of  the  town.  One  in  1863  lasted  seventeen 
weeks,  and  left  a  feeling  of  discontent  that  promised 
trouble  in  the  future.  It  would  take  up  too  much  time, 
however,  to  point  out  the  differences  in  the  two  boards, 
that  of  Wolverhampton  and  that  of  Nottingham.  They 
both  involve  the  same  general  principle — that  of  men 
and  masters,  to  use  an  English  expression,  settling  their 
own  affairs,  reasoning  together.  But  it  is  important  to 
know  that  the  boards  of  arbitration  existing  in  England 
embody  the  best  characteristics  of  the  Nottingham  and 
Wolverhampton  systems.  They  may  differ  in  detail,  but 
their  fundamental  features  are  the  same.  They  are  vol- 
untary, and  they  are  composed  of  an  equal  number  of 
employers  and  employed,  each  class  selecting  its  own 
representatives.  There  is  in  all  the  boards  a  provision 
for  conciliation  without  convening  the  entire  member- 
ship. Regular  meetings  of  the  board  are  provided  for, 
whether  there  is  any  business  to  be  transacted  or  not, 
and  in  some  form  or  other  there  is  a  power  to  which 
either  party  can  appeal  without  pride  or  shame  that  has 
authority  to  determine  as  well  as  to  hear,  and  whose  de- 
cisions are  received  without  exultation  or  humiliation, 
that  is,  an  umpire. 

The  next  great  trade  to  adopt  the  features  of  volun- 
tary conciliation  and  arbitration  was  the  iron  trade. 
Then  the  coal  trade  followed  suit,  and  so  the  system  is 
established  independently  of  law.  Its  workings  were 


112  INDUSTRIAL   CONCILIATION. 

such  that  many  other  industries  became  interested,  and 
were  glad  to  relieve  themselves  of  industrial  warfare. 

It  may  be  asked,  What  are  the  most  recent  experiences 
in  Great  Britain  under  a  system  which  has  existed  for 
forty  years?  A  fairly  adequate  answer  may  be  made, 
and  one  which  ought  to  be  very  encouraging  to  the  in- 
dustrial interests  of  this  country.  One  of  the  most  recent 
controversies,  as  well  as  one  of  the  largest  and  most 
wide-reaching,  among  English  workmen  was  that  between 
the  Amalgamated  Society  of  Engineers,  or,  as  we  call 
them,  machinists,  and  the  Employers'  Federation  of 
Engineering  Associations  in  1897.  The  immediate  cause 
of  the  conflict  was  the  demand  for  an  eight-hour  day. 
After  many  attempts  at  settlement,  propositions  by  each 
party  and  counter-propositions  by  the  other,  and  the  re- 
jection of  propositions,  this  severe  industrial  war  was 
brought  to  an  end  January  31,  1898,  the  struggle  lasting 
more  than  thirty  weeks.  Many  conferences  had  taken 
place,  but  after  a  few  months  the  lockout  extended  and 
suffering  and  privation  increased  among  the  men.  Jan- 
uary 13,  1898,  the  London  joint  committee,  which 
ordered  the  strike,  the  controversy  being  a  combination 
of  strike  and  lockout,  passed  a  resolution  to  withdraw 
the  demand  for  the  eight-hour  day.  Notice  of  this 
action  was  given  to  the  employers,  who  consented  to  in- 
corporate in  the  terms  of  settlement  notes  and  explana- 
tions tending  to  protect  the  interests  of  the  trade-unions, 
and  the  men  were  advised  to  accept  the  offer.  This 
was  accomplished  by  a  vote  of  28,588  in  favor  and  13,- 
927  against  the  proposition.  In  the  end  the  men  lost  the 
eight-hour  day,  the  first  cause  of  the  struggle,  but  gained 
some  formal  recognition  of  trade-unionism,  which  the 
employers  all  the  while  protested  they  were  not  fighting 


INDUSTRIAL   CONCILIATION.  113 

and  had  no  desire  to  crush.  The  chief  points  of  the 
terms  of  settlement,  so  far  as  this  paper  is  concerned,  are 
contained  in  a  note  stating  that  there  is  no  desire  on  the 
part  of  the  federation  (the  employers'  organization)  to 
create  a  specially  favored  class  of  workmen ;  that  with  a 
view  to  avoiding  disputes  in  future  a  deputation  of  work- 
men will  be  received  by  their  employers,  by  appointment, 
for  mutual  discussion  of  questions  in  the  settlement  of 
which  both  parties  are  directly  concerned,  and  that  in 
case  of  disagreement  the  local  associations  of  employers 
will  negotiate  with  the  local  officials  of  the  trade-unions. 
In  the  event  of  any  trade-union  desiring  to  raise  any 
question  with  an  employers'  association,  a  meeting  can 
be  arranged  by  application  to  the  secretary  of  the  em- 
ployers' local  association  to  discuss  the  question,  and 
failing  settlement  by  the  local  association  and  the  trade- 
union  of  any  question  brought  before  them,  the  matter 
can  be  forthwith  referred  to  the  executive  board  of  the 
federation  and  the  central  authority  of  the  trade-union. 
Pending  the  question  being  dealt  with,  there  must  be  no 
stoppage  of  work,  either  of  a  partial  or  a  general  charac- 
ter. Work  must  proceed  under  the  current  conditions. 
A  grievance  may  be  brought  forward  for  discussion 
either  by  the  workman  individually  concerned,  or  by  him 
and  his  fellow-workmen,  or  by  the  representatives  of  the 
union.  In  no  instance,  however,  do  the  federated  em- 
ployers propose  conditions  which  are  not  at  present  being 
worked  under  by  large  numbers  of  the  members  of  the 
allied  trade-unions. 

There  are,  of  course,  different  opinions  among  the 
officers  and  members  of  the  Amalgamated  Society  of 
Engineers  relative  to  the  wisdom  of  these  results.  Some 
of  them  think  that  the  provisions  of  the  agreement  have 


114  INDUSTRIAL   CONCILIATION. 

not  worked  to  the  advantage  of  the  men,  but,  instead, 
have  resulted  in  ill  feeling.  The  men  themselves  prefer 
an  independent  board  made  up  of  men  not  connected 
with  the  trade,  but  the  employers  reject  the  interven- 
tion of  third  parties.  The  men  are  not  hostile  to  the 
principle  of  arbitration,  provided  independent  persons 
can  be  secured  to  act.  In  the  settlement  agreed  upon, 
however,  there  is  no  provision  for  reference  to  a 
third  person,  and  if  the  representatives  of  the  masters 
and  men  cannot  agree  nothing  but  a  rupture  will 
ensue.  They  have  had  local  arrangements  for  concilia- 
tion and  arbitration,  but  not  for  the  whole  society  before 
the  strike  of  1897-98. 

Many  of  the  men  and  many  of  the  employers  do  not 
regard  arbitration  as  an  entirely  unmixed  good.  Much 
depends  upon  how  it  is  brought  about  and  conducted. 
In  the  arbitration  already  agreed  to  by  the  masters  they 
have  made  provision,  as  far  as  possible,  to  avoid  splitting 
the  difference.  This  has  proved  fairly  satisfactory. 
The  employers  prefer  men  accustomed  to  dealing  with 
evidence  and  facts,  and  they  always  decline  a  man  who 
smacks  of  politics.  Oftentimes  the  matter  in  dispute  is 
one  of  principle,  on  which  there  can  be  no  splitting  of 
the  difference. 

The  conciliation  board  has  saved  immense  sums  of 
money  for  the  shipbuilding  yards,  and  there  is  a  growing 
disposition  on  each  side  to  settle  disputes  amicably. 
There  is  much  less  heat  and  fire,  and  the  men  are  far 
more  ready  to  adopt  peaceful  means  of  settlement  than 
at  any  previous  time  in  their  history. 

The  Miners'  Federation  of  Great  Britain  contains 
about  230,000  financial  members,  and  comprises  in  its 
membership  the  miners  of  Scotland,  Wales,  and  England, 


INDUSTRIAL   CONCILIATION.  115 

except  those  of  Durham  and  Northumberland,  who  have 
an  association  of  their  own.  In  1893  one  of  the  greatest 
contests  in  the  entire  kingdom  occurred  in  the  coal  trade. 
It  began  in  June,  the  owners  asking  for  a  reduction  of 
twenty-five  per  cent,  in  wages,  based  upon  the  standard 
of  1888.  Joint  meetings  were  held,  but  the  men  de- 
clared that  there  was  no  living  wage  in  that  year,  and  it 
is  also  a  fact  that  the  collieries  did  not  pay  the  owners. 
The  debates  and  arguments  in  these  joint  meetings  were, 
of  course,  exceedingly  important.  Work  had  ceased  by 
the  28th  of  July,  1893,  and  on  August  23d  a  resolution 
was  passed  by  the  Miners'  Federation  that  it  would  not 
submit  to  a  reduction  in  wages.  So  the  issue  was  sharply 
defined.  Widespread  distress  prevailed  and  great  losses 
were  caused  by  the  long-drawn-out  strike,  facts  which 
attracted  the  attention  of  the  Prime  Minister,  at  that 
time  Mr.  Gladstone.  After  many  weeks  of  effort  the 
parties  seemed  almost  as  far  apart  as  when  the  strike 
began,  and  Mr.  Gladstone  suggested  a  conference  under 
the  chairmanship  of  Lord  Rosebery,  who  was  not  to  act 
as  an  arbitrator  or  umpire,  but  should  confine  his  action 
to  offering  his  good  offices  in  order  to  assist  the  parties  in 
arriving  between  themselves  at  a  friendly  settlement  of 
the  questions  in  dispute.  A  meeting  was  held  Novem- 
ber 1 7th,  and  after  sitting  many  hours  a  settlement  was 
effected,  providing  that  a  board  of  conciliation  be  con- 
stituted forthwith,  to  last  for  one  year  at  least,  consisting 
of  an  equal  number  of  coal  owners  and  miners'  repre- 
sentatives— fourteen  each.  It  was  provided  that  at  their 
first  meeting  they  should  endeavor  to  elect  a  chairman 
from  outside,  and  if  they  failed  they  were  to  ask  the 
Speaker  of  the  House  of  Commons  to  nominate  one, 
the  chairman  to  have  a  casting  vote.  The  board,  when 


Il6  INDUSTRIAL   CONCILIATION. 

constituted,  was  to  have  power  to  determine  from  time 
to  time  the  rate  of  wages  on  and  from  February  i,  1894. 
The  first  meeting  was  to  be  held  December  i3th,  and  the 
men  were  to  resume  work  at  once  at  the  old  rate  of 
wages  until  February  i,  1894.  It  was  also  agreed  that 
all  collieries,  so  far  as  practicable,  should  be  reopened 
for  work  forthwith,  and  that  no  impediment  should  be 
placed  in  the  way  of  the  return  of  the  men  to  work. 
When  the  board  met  it  could  not  agree  upon  a  chairman, 
and  the  Speaker  of  the  House  of  Commons  appointed 
Lord  Shand,  a  law  lord  of  the  Scottish  bar. 

The  first  meeting  of  the  new  board  was  held  in  De- 
cember, 1893,  but  it  did  not  work  very  satisfactorily. 
Further  conferences  were  held,  and  in  June,  1894,  in  the 
absence  of  the  independent  chairman,  the  representa- 
tives of  the  owners  and  of  the  miners  agreed  that  wages 
should  be  reduced  ten  per  cent.,  making  them  thirty 
per  cent,  above  the  standard  of  1888,  and,  further,  that 
there  should  be  no  reduction  for  two  years,  but  that  the 
board  could  raise  wages  fifteen  per  cent,  above  the 
standard.  Further  trouble  occurred  in  1896  and  1898, 
however.  In  the  latter  year  the  owners  pressed  for  a 
renewal  of  the  conciliation  board,  and  it  was  resusci- 
tated, principally  on  the  old  lines,  although  the  minimum 
wage  feature  was  retained  and  the  chairman  was  given 
a  deciding  vote  in  case  of  inability  to  agree.  No  diffi- 
culty was  experienced,  as  was  the  case  when  the  board 
of  1893  was  formed,  in  selecting  the  independent  chair- 
man. The  men's  representatives  named  Lord  James, 
who  was  accepted  by  the  masters.  Provision  was  made, 
however,  for  the  selection  of  a  chairman  in  case  of  dis- 
agreement, and  that  power  was  lodged  with  the  Speaker 
of  the  House  of  Commons, 


INDUSTRIAL   CONCILIATION.  \\] 

The  rules  then  adopted  (1898)  provided  for  a  board  to 
be  known  as  "  The  Board  of  Conciliation  for  the  Coal 
Trade  of  the  Federated  Districts,"  to  determine  from 
time  to  time  the  rate  of  wages  as  from  January  i,  1899, 
the  board  to  consist  of  an  equal  number  of  coal  owners 
or  coal  owners'  representatives  and  miners  or  miners' 
representatives, —  fourteen  of  each,— with  a  chairman 
from  outside,  as  stated. 

In  January,  1899,  the  men  applied  for  an  increase  of 
seven  and  one  half  per  cent.,  and  after  a  long  discussion 
the  rate  was  granted.  Under  the  rules  and  custom, 
when  an  increase  or  decrease  is  demanded  by  one  side 
or  the  other  a  fixed  sum  must  be  named,  and  the  chair- 
man must  decide  the  question  submitted  to  him.  He 
must  give  either  the  per  cent,  demanded  or  nothing; 
there  can  be  no  splitting  the  difference.  This  provision 
overcomes  an  objection  to  the  independent  umpire 
which  is  frequently  urged,  as  the  disposition  of  such  an 
official,  when  he  can  play  the  part  of  a  compromiser,  is 
to  give  something  to  the  side  making  the  demand;  and 
this  is  especially  true  when  the  umpire  belongs  to  the 
political  class  and  has  the  chance  to  make  a  play  for 
popularity. 

Like  the  Amalgamated  Society  of  Engineers,  the  mem- 
bers have  different  views  relative  to  the  effectiveness  of 
the  method  provided.  One  prominent  representative  of 
the  employers  insists  that  no  technical  knowledge  is  re- 
quired for  the  independent  chairman,  and  that  it  is  best 
to  have  a  man  not  connected  with  the  trade,  for  both 
sides  are  governed  by  their  own  views  and  often  lack 
balance  and  judicial  minds.  The  weakness  in  the  pres- 
ent board  is  that  there  is  no  provision  for  enforcing  the 
decision.  A  man  can  give  two  weeks'  notice  to  quit; 


Il8  INDUSTRIAL   CONCILIATION. 

and  if  an  employer  does  not  abide  by  the  decision  pres- 
sure is  put  upon  him  by  the  masters'  board,  but  he  can 
withdraw  from  the  federation  and  forfeit  the  money  he 
has  paid  to  the  association. 

It  is  also  the  opinion  of  some  of  the  members  that 
both  sides  should  have  large  funds,  for  if  each  side 
is  well  supplied  with  money  there  is  hesitation  about 
wasting  it. 

The  Northumberland  coal  trade  has  its  board  of 
conciliation  and  arbitration,  which  has  worked  with 
general  satisfaction,  there  being  here  and  there,  of 
course,  parties  who  object  not  only  to  methods  but  to 
results. 

The  boot  and  shoe  trade  of  Leicester  represents  over 
two  hundred  and  fifty  boot  and  shoe  factories,  which 
have  sprung  up  during  the  past  forty  years.  The  fed- 
eration numbers  about  eleven  thousand  men.  In  1895 
there  was  a  serious  lockout  caused  by  the  introduction 
of  machinery.  After  six  weeks'  struggle  the  terms  of 
settlement  were  agreed  upon,  one  of  the  provisions  being 
that  certain  sums  of  money  should  be  deposited  in  the 
hands  of  trustees  as  a  guaranty  for  the  carrying  out  of 
the  provisions  of  the  agreement,  and  a  trust  deed  was 
executed  by  which  each  side  deposited  ^1000  as  a  fund 
from  which  fines  for  breaches  of  the  rules  should  be 
levied.  Their  method  is  to  constitute  a  board  consist- 
ing of  representatives  of  both  sides  and  an  umpire. 
With  very  few  exceptions,  the  agreement  has  worked  in 
a  very  satisfactory  manner. 

The  experience  of  the  one  hundred  and  forty  factories 
engaged  in  boot  and  shoe  production  in  Northampton 
has  been  fairly  satisfactory.  After  the  strike  of  1895 
terms  of  settlement  were  reached  under  which  it  was 


INDUSTRIAL 

agreed  that  there  should  be  a  joint  committee  of  repre- 
sentatives of  the  employers  and  workmen,  four  of  each, 
to  determine  the  principles  and  methods  of  arrangement 
and  classification  on  which  piece-work  statements  for 
machine  workers  shall  be  based;  that  there  may  be 
various  local  boards  of  arbitration  and  conciliation,  con- 
sisting of  equal  numbers  of  representatives  of  employers 
and  workmen  in  the  Northampton  district,  thus  recon- 
stituting the  old  boards,  revising,  however,  the  rules  so 
far  as  was  necessary,  with  a  view  to  greater  uniformity 
in  the  methods  of  the  joint  committees  of  representatives 
of  employers  and  employed  sitting  as  boards.  These 
reconstituted  boards  are  to  have  full  power  to  settle  all 
questions  submitted  to  them  concerning  wages,  hours  of 
labor,  and  the  conditions  of  employment  of  all  classes 
of  work-people  within  their  districts,  when  it  is  found 
impossible  in  the  first  place  to  settle  such  difficulties 
between  employers  and  employed.  Only  once  since  the 
settlement  was  made  in  1895  between  the  Federated  As- 
sociations of  Boot  and  Shoe  Manufacturers  and  the  Na- 
tional Union  of  Boot  and  Shoe  Operatives  has  an  umpire 
been  called  upon  to  make  a  decision  of  award  for  breach 
of  compact. 

In  February,  1899,  a  strike  occurred  at  the  shoe-shop 
of  a  London  firm,  a  member  of  the  Federated  Associa- 
tion, the  trouble  arising  over  the  classification  of  material. 
The  proprietors  were  willing  to  submit  the  matter  to  the 
board  of  arbitration  for  classification,  but  the  men  re- 
fused to  appoint  one  of  their  number  to  the  board  and 
prevented  this  from  being  carried  out.  So  the  manu- 
facturers made  a  demand  for  an  award  of  damages  from 
the  trust  fund.  When  this  demand  for  compensation 
was  made  many  felt  that  the  testing  time  of  the  value  of 


120  INDUSTRIAL    CONCILIATION. 

the  terms  of  settlement,  and  practically  the  existence 
of  the  board  of  arbitration,  had  come.  Lord  James,  the 
umpire  agreed  upon  previously,  heard  each  side,  and  on 
the  loth  of  June  rendered  his  decision,  which  was  that 
out  of  the  sum  of  ^"1000  deposited  with  the  trustees, 
^300  should  be  paid  and  forfeited  to  the  Federated 
Association.  It  is  interesting  to  note  that  the  Monthly 
Report  of  the  National  Union  of  Boot  and  Shoe  Opera- 
tives, referring  to  this  award  of  Lord  James,  remarked 
that  "  The  fine  of  .£300  imposed  on  the  union  for  the 
breach  by  our  London  members  we  hope  will  be  a  warn- 
ing to  executives  not  to  break  away  from  rules  and  agree- 
ments entered  into,  for  while  the  agreements  are  in 
existence  we  have  every  desire  that  they  shall  be  honor- 
ably carried  out  by  both  sides." 

The  North  of  England  iron  trade  has  had  much  ex- 
perience in  the  use  of  trade  boards.  Sir  David  Dale, 
one  of  the  best-known  iron  manufacturers  in  the  world, 
has  had  much  to  do  in  bringing  about  settlements.  The 
district  represented  by  the  manufactured  iron  and  steel 
trade  of  the  North  of  England  has  a  board  of  conciliation 
and  arbitration,  the  object  being  to  arbitrate  on  wages  or 
any  other  matters  affecting  the  respective  interests  of  the 
employers  and  operatives,  and  by  conciliatory  means  to 
interpose  its  influence  to  prevent  disputes  and  put  an 
end  to  any  that  may  arise. 

So,  too,  the  iron-mining  interests,  while  having  no 
active  board,  have  a  joint  committee  of  six  owners  and 
six  representatives  of  the  men.  This  method  has  been  in 
operation  almost  thirty  years.  The  joint  committee 
deals  with  local  questions  affecting  individual  places, 
wages,  and  other  matters. 

The  Boiler  Makers  and  Iron  and  Steel  Shipbuilders' 


INDUSTRIAL    CONCILIATION.  12 1 

Society  has  been  in  existence  for  more  than  sixty  years, 
and  is  one  of  the  wealthiest  trade-unions  in  England. 
There  has  been  no  strike  in  their  trade  for  many  years, 
more  than  a  score,  and  this  is  accounted  for  by  the  con- 
ciliatory features  which  exist  and  the  great  powers  given 
to  the  executive  council  of  the  union.  There  is  no 
actual  board  of  conciliation,  but  an  agreement  between 
the  Tyne,  Wear,  Tees,  and  Hartlepool  shipbuilders  and 
the  executive  council  of  the  Boiler  Makers  and  Iron  and 
Steel  Shipbuilders'  Society.  This  was  signed  July  5, 
1894,  to  continue  five  years. 

The  Scottish  manufactured  iron  trade  has  also  had 
experience  in  recent  years  in  the  matter  of  trade  concilia- 
tion and  arbitration.  In  September,  1896,  at  the  sug- 
gestion of  the  operatives,  negotiations  were  begun 
between  the  employers  and  workmen  engaged  in  the 
manufactured  iron  trade  of  Scotland,  with  a  view  to  the 
establishment  of  such  a  board  on  the  same  lines  with 
that  of  the  North  of  England,  already  referred  to.  A 
conference  proved  the  existence  of  a  feeling  on  the  part 
of  employers  and  employed  that  the  meeting  together  of 
representatives  of  the  masters  and  operatives,  by  whom 
grievances  could  be  discussed  and  disputes  amicably 
adjusted,  would  conduce  to  mutual  confidence  and 
harmonious  co-operation,  and  would  be  for  the  best  in- 
terests of  the  trade.  As  a  result  a  board  was  formed 
in  March,  1897,  including  twenty  works,  owned  by 
eighteen  firms,  only  one  manufacturer  in  the  West  of 
Scotland  not  being  a  member  of  the  board.  Sir  James 
Bell,  ex-lord  provost  of  Glasgow,  was  unanimously 
chosen  arbitrator,  but  during  some  years  of  the  board's 
existence  his  services  have  not  been  needed. 

The  Nottingham  lace  trade  is  another  industry  that 


122  INDUSTRIAL   CONCILIATION. 

has  had  large  experience  in  the  workings  of  boards  of 
conciliation  and  reference.  They  have  had  these  boards 
since  1868,  and  the  changes  have  been  comparatively 
few  and  slight  since  then,  only  those  being  made  where 
experience  has  shown  some  weakness.  They  have 
penalties  for  not  complying  with  the  decisions  of  the 
board,  which  were  added  in  1895,  and  also  retained  in 
the  rules  adopted  in  1898.  There  was  a  great  dispute 
in  1889,  lasting  over  eight  weeks,  and  ending  with  a 
twenty  per  cent,  reduction  in  wages.  There  are  frequent 
fluctuations  in  the  lace  trade,  which  is  largely  affected 
by  foreign  competition,  especially  French  and  German; 
so  the  board  meets  on  an  average  once  every  week  in  the 
mayor's  parlor.  General  trade  conditions  are  not  dis- 
cussed, but  may  be  quoted  in  support  of  arguments. 
Wages  are  not  determined  by  the  profit.  Custom  origi- 
nally fixed  wages  in  the  olden  days,  but  they  have  been 
scaled  down  gradually  to  fit  present  conditions.  The 
most  friendly  relations  have  been  engendered  between 
the  two  classes  by  these  frequent  meetings  of  the  board, 
which  have  created  a  feeling  of  equality  as  nothing  else 
could.  There  cannot  be  a  trade  where  there  is  a  better 
feeling  existing,  and  this  despite  the  fact  that  the  men 
are  necessarily  idle  for  eight  months,  the  season  running 
only  from  November  to  March.  If  this  trade  can  man- 
age disputes,  any  trade  can,  for  there  are  infinite  varieties 
of  lace  and  infinite  chances  for  disagreement.  They 
have  almost  reached  the  position  where  they  consider 
the  question  in  the  abstract.  If  a  man  is  discharged  or 
stops  work,  the  dispute  is  never  considered  until  he  is 
reinstated  or  resumes  work.  It  is  not  sufficient  that  he 
may  return;  he  must  actually  be  at  work  before  the 
board  acts.  If  he  is  a  recalcitrant  member  of  the  marm- 


INDUSTRIAL   CONCILIATION.  123 

facturers*  association  who  withdraws,  that  leaves  the 
workmen  free  to  strike  the  shop. 

In  the  cotton  trade,  one  subject  to  great  disputes, 
there  exists  the  Northern  Counties  Amalgamated  Asso- 
ciation of  Weavers,  consisting  of  eighty  thousand  mem- 
bers. A  joint  committee  is  employed  for  the  settlement 
of  disputes  between  employers  and  men  in  both  the 
weaving  and  spinning  trades.  There  are  six  representa- 
tives of  each  side,  one  being  taken  from  each  town,  so 
that  an  unbiassed  tribunal  is  secured  from  which  personal 
feeling  is  eliminated.  There  has  never  been  a  single 
case,  except  a  demand  for  a  general  advance  in  wages, 
which  has  not  been  settled  without  a  strike. 

A  board  for  the  potteries  trade  was  established  in 
1868.  There  had  been  previous  arrangement  for  small 
arbitration  of  minor  disputes,  but  in  1868  a  permanent 
board,  constructed  on  the  principle  of  equal  representa- 
tion on  each  side,  with  a  permanent  umpire,  was  estab- 
lished. Distinguished  men  acted  as  umpires  in  this 
trade,  such  as  E.  J.  Davis,  Mr.  Kettle,  Mr.  Mundella, 
Judge  Hughes,  and  Lord  Brassy.  The  board  was  ex- 
tremely useful  and  successful  in  settling  a  large  number 
of  disputes  relating  to  individual  men  and  branches  in  the 
trade,  and  had  during  its  existence  seven  or  eight  great 
arbitrations,  in  which  the  interests  of  all  operatives  were 
involved.  The  board  was  reconstructed  in  1884  or 
1885,  in  the  meantime  a  court  of  conciliation  working 
for  the  settlement  of  small  disputes.  In  November  and 
December,  1898,  a  section  of  the  employers  asked  the 
men  to  combine  with  them  to  raise  simultaneously  sell- 
ing prices  and  wages.  With  no  board  in  existence  in 
the  trade,  in  case  of  dispute  between  the  employers  and 
employed  the  two  sides  endeavor  to  have  each  appoint 


124  INDUSTRIAL   CONCILIATION. 

an  independent  person  as  arbitrator,  and  the  two  so 
chosen  to  appoint  an  umpire.  The  question  in  dispute 
is  then  referred  to  this  tribunal,  which  hears  the  em- 
ployees or  their  representatives  and  the  manufacturers 
or  their  secretary. 

A  large  industry  in  England  is  that  of  dyeing  and  its 
associated  trades.  In  July,  1891,  the  workmen's  associa- 
tion of  West  Riding,  in  Yorkshire,  which  was  in  excellent 
working  order,  gave  a  sharp  and  short  notice  to  one  of  the 
leading  firms  in  Huddersfield  that  unless  certain  demands 
were  granted  forthwith  the  men  would  go  out  on  a  strike. 
The  firm,  having  no  association  to  back  it  and  being 
busy  at  the  time,  conceded  the  demands,  and  then  con- 
vened a  meeting  of  master  dyers  to  consider  the  advis- 
ability of  combining.  The  men  wished  to  see  the 
masters  organized,  so  that  the  associations  could  help 
each  other  and  could  form  a  board  of  conciliation.  In 
October,  1892,  the  men's  secretary  and  four  delegates 
attended  a  masters'  meeting,  when  it  was  resolved  to 
form  a  board  of  conciliation.  There  were  some  difficul- 
ties encountered,  but  in  1894  a  board  was  formed  and 
held  its  first  meeting.  To  show  the  good  feeling  created 
by  this  board  the  following  notice  was  posted  a  month 
later  by  the  West  Riding  Dyers'  and  Finishers'  Associa- 
tion: 

"It  has  been  brought  to  our  notice  that  some  of  the  dyers, 
finishers,  millers,  and  scourers  of  West  Riding  have  urged  as  a 
reason  for  not  joining  a  trades-union  that  if  they  did  and  the  em- 
ployers knew  this  they  would  be  dismissed  for  so  doing.  We  hereby 
give  notice  that  any  man  in  our  employment  is  at  liberty  to  join  any 
trades-union  he  may  wish  to  join,  without  any  fear  of  such  action  on 
our  part." 

The  board  of  conciliation  between  the  masters'  asso- 


INDUSTRIAL   CONCILIATION.  12$ 

ciation  and  the  amalgamated  society  of  dyers  was  regis- 
tered by  the  Board  of  Trade  October  29,  1896.  Except 
slight  misunderstandings  of  a  very  temporary  nature,  the 
association  has  worked  most  beneficially  for  all  parties 
concerned.  There  has  been  very  recently  a  reconstruc- 
tion of  the  rules  with  a  view  to  enlarging  their  scope  and 
probably  establishing  a  fund  from  which  fines  could  be 
deducted,  but  I  have  no  report  of  this  reconstruction. 

The  cotton-warp  master  dyers  joined  the  West  Riding 
Dyers'  and  Finishers'  Association  and  constituted  a 
board  of  conciliation  in  1897,  and  in  May,  1899,  the 
employers  issued  a  circular  to  the  trade  and  to  the  men's 
association  in  Lancashire  and  Yorkshire  seeking  to  create 
a  powerful  and  united  board  of  conciliation  for  the  two 
counties,  including  every  branch  of  the  dyers'  and 
finishers'  trade.  I  believe  this  has  been  accomplished, 
but  am  not  fully  informed.  Representative  men  on  both 
sides  believed  that  such  a  board  would  be  of  very  great 
service.  Before  the  establishment  of  the  boards  diffi- 
culties were  constantly  arising  and  there  was  growing 
discontent,  which,  while  more  particularly  affecting 
individual  firms,  culminated  in  strikes  and  lockouts. 
Since  the  establishment  of  the  boards  these  have  been 
obviated.  In  one  or  two  cases,  through  misunderstand- 
ing, when  the  men  forgot  the  rule  and  went  out  without 
bringing  the  dispute  to  the  attention  of  their  committee, 
the  matter  was  soon  set  right  and  the  men  returned  to 
work.  The  contact  in  the  meetings  has  helped  to  a 
better  understanding  and  a  better  knowledge  all  around, 
with  favorable  results  to  both  masters  and  men.  The 
secretary  of  the  masters'  association  does  not  hesitate  to 
say  that  the  boards  work  with  every  satisfaction. 

There  is  in  London  an  association  formed  to  prevent 


126  INDUSTRIAL   CONCILIATION. 

strikes  and  lockouts,  known  as  the  London  Labor 
Conciliation  and  Arbitration  Board.  It  was  the  direct 
outcome  of  the  great  strike  of  the  dock  laborers  in 
London  in  1889.  A  suggestion  from  the  Chamber  of 
Commerce  to  submit  their  differences  to  some  sort  of 
arbitration  met  with  refusal  from  both  parties  to  the  dis- 
pute, but  the  effects  of  the  strike  were  so  disastrous  and 
disturbing  to  business  in  London  that  a  committee  was 
appointed  by  the  council  of  the  Chamber  of  Commerce 
to  investigate  the  whole  question  of  labor  conciliation  and 
arbitration,  with  instructions  to  report,  if  advisable,  some 
scheme  for  the  prevention  of  disputes  and  for  settling 
them  if  they  should  arise  in  the  metropolis.  So  this 
board  of  conciliation  and  arbitration  was  organized  as 
the  result  of  the  efforts  of  the  Chamber  of  Commerce. 
It  consists  of  twelve  representatives  chosen  by  the 
Chamber  of  Commerce,  and  one  representative  from 
each  of  the  twelve  groups  into  which  the  trades  of 
London  were  divided.  There  are  the  building  trades, 
cabinet  and  furnishing  trades,  carmen,  coach,  tram, 
and  'bus  employees,  clerks,  shop  assistants,  and 
warehousemen,  clothing  trades,  gas,  coal,  and  chemi- 
cal trades,,  leather  trades,  railway  workers,  metal 
trades,  printing  and  paper  trades,  provision  and  food 
trades,  and  shopping  trades.  Each  trade  is  united 
to  form  a  separate  conciliation  committee.  This  com- 
mittee, consisting  of  experts  in  a  particular  trade,  is 
composed  of  equal  numbers  of  employers  and  employed, 
chosen  by  their  respective  orders.  To  such  a  board  any 
dispute  in  its  own  trade  is  submitted,  provided  the  two 
sides  agree  to  such  submission.  In  this  way  any  griev- 
ance can  be  amicably  discussed  before  it  reaches  an 
acute  stage.  If  the  board  is  unable  to  reach  an  agree- 


INDUSTRIAL    CONCILIATION.  \2J 

ment  it  then  offers  facilities  for  arbitration,  and  in  the 
event  of  this  being  refused  the  two  sides  retain  all  their 
rights  to  become  belligerents.  At  first  this  board  decided 
not  to  interfere  in  any  dispute  unless  application  came 
from  the  parties  to  the  board,  but  it  was  found  from  ex- 
perience that  it  was  sometimes  considered  a  sign  of 
weakness  if  one  or  the  other  contestant  made  an  applica- 
tion for  the  good  offices  of  the  board.  The  latter  has 
therefore  adopted  a  rule  that  whenever  a  dispute  is  heard 
of  as  pending  or  about  to  begin,  a  communication  be  sent 
to  each  side  inviting  them  to  meet  at  the  Chamber  of 
Commerce.  The  first  effort  is  to  get  the  parties  together, 
and,  if  possible,  to  help  them  in  settling  their  differences. 
This  is  the  method  preferred,  for  they  believe  that  it  is 
much  better  for  employers  and  employed  to  settle  their 
differences  between  themselves  without  outside  interfer- 
ence. Such  a  settlement  is  in  the  nature  of  a  bargain 
after  mature  deliberation  and  careful  discussion.  If, 
after  coming  together,  the  parties  fail  to  agree,  then  the 
board  offers  to  appoint  arbitrators  and  investigate  the 
trouble  in  a  regular  arbitration. 

This  board  met  for  the  first  time  on  the  i2th  of  Decem- 
ber, 1890.  The  amount  of  work  done  by  it  is  somewhat 
limited,  of  course.  The  matters  settled  or  arbitrated 
have  not,  as  a  rule,  affected  any  considerable  number  of 
work-people,  and  yet  the  workings  of  it  have  been  suc- 
cessful and  satisfactory  to  those  accepting  its  suggestion 
of  mediation.  The  fact  is  that  not  since  the  board  was 
organized  have  the  services  of  an  umpire  been  needed, 
nor  has  there  been  a  single  case  of  repudiation  of  a  de- 
cision. On  an  average,  seven  or  eight  cases  have  been 
considered  in  one  way  or  another  by  this  board  during 
each  year  since  its  formation. 


128  INDUSTRIAL   CONCILIATION. 

The  method  pursued  by  the  London  Chamber  of  Com- 
merce has  been  approved  by  the  associated  Chambers  of 
Commerce  of  Great  Britain,  and  conciliation  boards  have 
been  formed  in  many  of  the  trade  centres  of  the  king- 
dom. The  lines  on  which  they  have  been  organized 
vary  in  details,  but  in  general  scope  they  are  modelled 
after  the  London  board. 

The  secretary  of  the  National  Society  of  Amalgamated 
Brassworkers,  in  his  annual  report  for  1898,  calls  atten- 
tion to  the  fact  that  the  executive  continues  to  devote 
its  energies  to  obtain  advances  of  wages  and  prices  and 
to  remove  anomalies  and  grievances ;  that  it  never  misses 
an  opportunity  to  settle  differences  by  mutual  negotia- 
tion, avoiding  wherever  it  can  a  trade  conflict.  After 
twenty-six  years'  experience  it  has  been  conclusively 
proved,  he  says,  that  it  is  far  better  to  avert  strikes  and 
lockouts  than  to  encourage  or  provoke  them,  and  he 
testifies  that  boards  of  conciliation  have  worked  to  the 
advantage  of  employer  and  workmen;  that  differences 
which  might  have  led  to  abstention  from  work  have  re- 
sulted, when  discussed  by  both  sides,  in  happy  solutions, 
and  that  on  no  occasion  have  such  means  been  unequal 
to  the  task  of  arriving  at  a  mutual  settlement. 

Again,  in  1899,  he  reported  that  the  executive  had 
been  actively  engaged  throughout  the  year  in  directing 
the  policy  of  the  society  and  its  agencies,  and  also  in 
advising  the  members  in  difficult  and  trying  circum- 
stances; that  whenever  it  could,  it  preferred  to  settle  by 
conciliatory  rather  than  by  arbitrary  means,  and  that  in 
this  spirit  nearly  one  hundred  cases  of  dispute  had  been 
adjusted  to  the  satisfaction  of  employers  and  workmen. 
Instead  of  there  being  any  abatement  or  lack  of  interest 
in  its  arduous  labors,  the  secretary  stated  that  its  energies 


INDUSTRIAL   CONCILIATION.  12$ 

had  been  redoubled,  to  the  profit  and  advantage  of  all; 
that  it  had  occasionally  sanctioned  the  suspension  of 
labor,  but  that  this  was  in  cases  where  the  employers 
wanted  to  force  members  to  work  under  conditions 
degrading  to  manhood  and  detrimental  to  them  as  wage- 
earners. 

Prominent  members  of  the  brassworkers'  society  testify 
that  cases  of  repudiation  of  agreement  or  an  award  are 
so  exceptional  that  they  are  not  worth  mentioning  in  dis- 
cussing the  system ;  that  if  the  points  of  reference  are 
agreed  to  on  each  side  it  is  almost  the  invariable  custom 
that  all  concerned  carry  out  the  decision  loyally. 

Perhaps  the  greatest  federation  in  all  England  is  that 
for  the  Colliery  Proprietors  and  the  Miners'  Federation  of 
Great  Britain.  Since  the  coal  strike  in  1895  the  joint 
board  has  worked  harmoniously  without  any  trade  con- 
flict worthy  of  note.  In  many  of  the  English  trades 
there  are  boards  of  conciliation,  and  disputes  are  pre- 
vented in  the  aggregate  hourly.  The  principle  has  per- 
meated and  extended  to  all  branches  of  trade.  The 
moral  effect  has  been  to  give  the  officials  of  the  trade- 
union  more  power  over  their  members.  This  has  been 
used  in  the  interest  of  sobriety,  and  also  to  steady  the 
ardent  or  injudicious  spirits  who  sometimes  act  more 
from  feeling  than  from  a  logical  consideration  of  griev- 
ances, or  grievances  too  insignificant  to  go  to  war  on. 
This  power  is  transmitted  from  the  fact  that  the  employ- 
ers act  in  a  concentrated  way  through  an  association, 
whereas  formerly  they  had  no  such  association,  and  much 
guerilla  warfare  was  the  consequence.  The  men  have 
gained  by  voluntary  arbitration,  and  are  everywhere 
strong  supporters  of  it,  being  wise  enough  to  see  its 
advantages  to  their  welfare. 


130  INDUSTRIAL    CONCILIATION. 

On  the  Continent  of  Europe  the  experiences  have  not 
been  so  extensive  as  in  Great  Britain,  yet  they  have  been 
sufficient  to  testify  to  the  moral  excellence  of  trade  con- 
ciliation and  arbitration  independent  of  governmental 
action.  In  Germany  as  well  as  in  Austria,  the  inspec- 
tors of  factories  occupy  a  very  prominent  position  in  the 
industrial  world,  and  they  are  peculiarly  fitted  to  exer- 
cise a  conciliatory  influence  upon  both  employers  and 
employed.  This  influence  they  frequently  exercise  in 
the  capacity  of  mediators,  and  their  activity  in  this 
direction  might  even  be  more  beneficial  could  they  but 
overcome  the  distrust  with  which  they  are  sometimes  re- 
garded by  the  working  people.  One  remarkable  instance 
of  mediation  was  the  intervention  of  the  Emperor  on  the 
occasion  of  the  Westphalian  strike  of  1889.  Such  inter- 
vention, of  course,  necessarily  differs  from  the  mediation 
of  the  private  individual,  in  that  it  is  impossible  entirely 
to  divest  the  action  of  the  head  of  the  state  of  a  some- 
what compulsory  character.  It  cannot  be  doubted, 
however,  that  the  Emperor's  expressions  of  opinion 
contributed  largely  to  the  speedy  termination  of  the 
strike.  Efforts  have  been  made  from  time  to  time  in 
Germany  to  organize  voluntary  boards  of  arbitration  and 
conciliation  in  the  different  industries,  but,  except  in  the 
printing  trade,  little  has  been  achieved  in  this  direction. 
The  spirit,  however,  of  the  trade  board  is  spreading  in 
Germany,  and  the  experience  of  different  countries  is 
contributing  to  its  dissemination. 

Switzerland,  a  country  that  is  always  trying  social  and 
economic  experiments,  has  had  some  experience  in  the 
beneficial  results  of  private  boards.  One  important 
organization  is  the  Swiss  Reserve  Fund.  Whenever  a 
strike  is  impending,  this  institution  conducts  a  thorough 


INDUSTRIAL   CONCILIATION.  13! 

inquiry  into  all  the  circumstances  of  the  case  and  makes 
every  effort  to  obtain  a  settlement.  This  it  does  either 
by  negotiations  with  the  employers  or  through  arbitra- 
tion, and  no  strike  receives  its  sanction  until  these  means 
have  proved  unavailing.  The  association  of  employers 
and  employed  for  the  promotion  of  a  common  object, 
which  was  suggested  some  years  ago  by  Herr  Krebs, 
proved  an  excellent  means  of  encouraging  good  relations 
and  closer  communication  between  capital  and  labor. 
Boards  of  conciliation  and  arbitration  have  been  insti- 
tuted in  connection  with  many  of  the  trade-unions,  and 
in  some  of  the  cantons  they  have  been  established  and 
supported  by  the  cantonal  governments.  The  Tribunes 
of  Industrial  Arbitration,  which  were  instituted  at  Geneva 
in  1874,  consisted  of  a  justice  of  the  peace  as  president 
and  two  arbitrators  elected  respectively  by  the  employer 
and  employed.  These  arbitrators,  however,  acted  from 
political  motives,  and  hence  the  boards  proved  a  failure. 
They  were  abolished  in  1883  in  order  to  establish  Conseils 
des  Prud  'hommes  on  the  French  pattern. 

A  law  authorizing  voluntary  boards  of  arbitration  and 
conciliation  was  passed  for  the  Canton  Vaud  in  1888, 
and  in  the  following  year  boards  were  established  at 
Lausanne,  Vivis,  Yverdon,  and  Ste.  Croix.  A  voluntary 
board  of  conciliation  and  arbitration  was  instituted  by 
the  Canton  of  Zurich  in  1889.  A  federation  was  first 
formed  consisting  of  the  employers'  associations  and 
trade-unions  of  that  canton  and  the  neighborhood.  Its 
object  was  the  prompt  and  gratuitous  settlement  of  all 
disputes  between  employer  and  employed  with  regard 
to  the  hire  of  labor  and  the  prevention  by  conciliation 
of  all  disputes  as  to  the  payment  of  wages,  labor  con- 
tracts, and  questions  of  apprenticeship.  The  cantonal 


132  INDUSTRIAL   CONCILIATION. 

law  of  Berne  permits  the  creation  of  voluntary  boards 
of  conciliation,  but  in  spite  of  petitions  from  both 
parties  there  has  been  no  satisfactory  experience  under 
the  law.  Trade  boards  do  not  seem  to  have  accom- 
plished much  yet  in  Switzerland,  but  they  are  spreading 
there,  and  as  industry  expands  the  necessity  for  their 
existence  will  be  more  thoroughly  felt. 

Denmark,  during  the  summer  of  1899,  witnessed  one 
of  the  sharpest  labor  wars  of  the  century.  There  were 
no  great  riots  or  other  disturbances,  but  growing  out  of 
a  strike  of  a  few  carpenters  in  Jutland,  who  refused  to 
observe  certain  regulations  prescribed  by  their  employ- 
ers, a  very  large  majority  of  all  the  manufacturers  in 
Denmark  combined  to  crush  organized  labor.  The  em- 
ployers, through  their  new  union,  ordered  a  lockout,  by 
which  fifty  thousand  or  more  men  were  shut  out  of  the 
factories.  The  lockout  lasted  through  the  spring  and 
summer  of  1899,  but  the  opposing  forces  finally  reasoned 
out  their  difficulties.  So  far  as  the  workers  themselves 
were  concerned,  their  victory  consisted  in  the  fact  that  the 
board  of  arbitration  which  was  agreed  upon  decided  to 
refer  the  whole  trouble  back  to  the  insignificant  difficulty 
of  the  carpenters'  strike  at  Jutland.  So  far  as  the  em- 
ployers were  concerned,  their  victory  consisted  in  the  fact 
that  they  discovered  that  their  own  interests  were  better 
enhanced  by  arranging  with  the  representatives  of  organ- 
ized labor  through  the  representatives  of  organized  capi- 
tal. The  workmen's  central  union  accepted  the  services 
of  a  board  of  arbitration.  The  employers'  union  insisted 
upon  the  points  they  had  proposed,  and  the  struggle 
continued  until  September.  The  final  settlement  was, 
of  course,  a  compromise,  the  employers  giving  up  the 
idea  of  crushing  the  labor  organizations  and  modifying 


INDUSTRIAL   CONCILIATION.  133 

most  of  their  demands,  and  the  workmen  recognizing 
some  of  the  important  points  advanced  by  the  employ- 
ers. It  was  provided  in  the  settlement  that  no  boycott 
should  take  place  on  either  side  following  the  signing  of 
the  agreement,  and  that  all  agreements  when  made 
should  be  respected  and  obeyed  by  all  the  organizations 
represented.  The  result  was  peace  and  prosperity. 
Mechanics  and  laborers  of  all  classes  returned  to  their 
tasks,  and  a  better  feeling  prevailed  between  the  em- 
ployed and  employers,  for  each  discovered  the  inherent 
strength  of  the  other,  resulting  in  mutual  respect.1 

I  need  not  refer  to  Italy,  except  to  say  that  institu- 
tions for  the  settlement  of  disputes  between  labor  and 
capital  hardly  exist  in  that  country.  There  have  been 
some  efforts  towards  establishing  trade  boards  in  some 
parts  of  Italy,  and  the  Labor  Chambers  sometimes  as- 
sume the  positions  of  arbitrators  in  disputes  pending 
between  masters  and  operatives.  There  is  also  a  state 
board,  but  the  experiences  have  not  been  sufficient  to 
warrant  any  lengthy  treatment.  Such  boards  as  are 
established  under  the  law  act  both  as  boards  of  concilia- 
tion and  as  judicial  courts.  The  board  of  conciliation 
is  empowered  to  make  friendly  arrangements  in  all  con- 
troversies. The  arbitrators  are  elected  by  ballot  by  the 
whole  body  of  manufacturers,  foremen,  and  operatives, 
of  both  sexes,  who  have  attained  their  majority  and 
exercised  their  art  or  craft  for  a  year,  and  who  are  neither 
criminals  nor  bankrupts. 

In  France  the  experience  is  more  enlivening,  and 
more  to  the  point  perhaps,  because  there  the  parent  idea 
was  born  in  the  constitution  of  the  Conseils  des  Prud'- 

1  For  an  excellent  account  of  the  great  strike  in  Denmark,  see 
Gunton's  Magazine  for  April,  1900. 


134  INDUSTRIAL   CONCILIATION'. 

hommes ;  but  there  are  now  in  some  trades  joint  boards 
of  arbitration  similar  to  those  which  I  have  designated 
as  existing  in  England.  This  is  especially  true  among 
the  typographers  of  Marseilles.  Since  1884,  when  there 
was  more  or  less  trouble,  the  most  cordial  relations  have 
existed  between  the  employers  and  workmen.  Numbers 
of  instances  of  the  good  work  of  the  federation  might  be 
cited.  Of  course,  there  have  been  some  unhappy  ex- 
periences, but  on  the  whole  the  experience  has  been 
fairly  satisfactory. 

It  is  the  older  associations  existing  in  France  which 
show  the  greatest  anxiety  to  improve  the  position  of 
workers  by  pacific  measures.  The  federation  of  workers 
in  the  book  trade  is  a  striking  example  of  this  spirit, 
wherein  agreements  are  made  for  the  settlement  of  dif- 
ficulties, the  influence  being  to  bring  the  two  forces 
together  on  mutual  understanding  and  with  moral  obliga- 
tions. They  have  central  committees,  and  every  strike 
declared  without  authorization  of  the  federation  must 
be  at  the  cost  of  the  sectional  committee. 

Joint  committees  for  conciliation  have  been  formed, 
either  by  some  of  the  mixed  syndicates  or  by  special 
arrangement  between  the  separate  syndicates  in  different 
trades.  The  joint  syndical  council  for  the  paper  trade 
was  formed  on  the  initiative  of  the  employers  in  1873, 
and  was  expressly  on  the  model  of  English  trade  boards. 
Similar  committees  exist  among  the  typographers  and 
others  at  Rouen.  Since  the  end  of  1891  arbitration 
committees  founded  by  the  joint  efforts  of  the  syndicates 
of  employers  and  employed  in  bleach-houses  and  laun- 
dries have  been  working  satisfactorily  for  the  department 
of  the  Seine  and  at  Boulogne. 

Perhaps   the   most  impressive  experience  under  this 


INDUSTRIAL   CONCILIATION.  13$ 

method  took  place  in  the  coal  trade.  During  the  past 
two  years  of  1899  and  1900  two  of  the  most  important 
strikes  of  the  period  were  settled  by  recourse  to  voluntary 
arbitration.  They  are  both  of  them  notable  examples 
of  voluntary  arbitration  in  France.  The  first  strike  was 
that  of  the  employees  of  the  famous  iron-works  of  Mr. 
Schneider  at  Creusot,  the  Krupp  of  France.  The  strike 
started  September  20,  1899,  and  included  all  the  working 
men  of  the  establishment.  The  next  day  it  extended 
to  the  coal  mines  of  Montchanin  belonging  to  the  com- 
pany, and  the  number  of  strikers  was  thus  raised  to  over 
ten  thousand.  The  demands  of  the  men  were  recognition 
of  the  union,  better  fulfilment  of  previous  engagements 
regarding  wages,  and  more  consideration  on  the  part  of 
foremen  and  overseers.  One  of  the  great  difficulties  to 
a  settlement  was  the  unwillingness  of  the  company  to 
receive  the  secretary  of  the  trade-union,  who  was  not  a 
member  of  the  company's  force. 

The  first  part  of  October  the  men  appealed  to  the 
government  to  arbitrate.  The  company  likewise  solicited 
the  mediation  of  the  government.  M.  Waldeck-Rous- 
seau,  the  Prime  Minister,  accepted  the  task,  and  made  his 
decision  October  yth,  in  a  formal  document,  in  which 
the  reasons  for  each  point  decided  were  given.  This 
decision  was  accepted  and  the  men  returned  to  work. 

The  second  strike  was  the  general  strike  of  coal 
miners  of  the  Basin  of  the  Loire  during  the  winter  of 
1899-1900.  The  causes  for  the  strike  date  back  to  the 
fall  of  1898,  when  the  Federation  of  Miners'  Unions  of 
the  Department  of  the  Loire  made  a  formal  demand  in 
writing  of  the  mine  owners  for  an  increase  in  wages, 
basing  their  demands  on  the  rise  in  the  price  of  coal  and 
consequent  augmentation  of  profits.  This  demand  was 


136  INDUSTRIAL   CONCILIATION. 

refused  on  the  ground  that  as  wages  had  not  been  re- 
duced when  the  price  of  coal  declined  they  should  not 
be  increased  when  the  contrary  movement  took  place, 
and,  also,  that  the  owners  were  under  heavier  burdens 
on  account  of  the  new  compulsory  compensation  act. 
The  miners  were  not  satisfied,  and  began  to  prepare  for 
a  general  strike.  Nothing,  however,  was  done  until 
December,  1899,  when  the  demand,  coupled  with  others, 
was  renewed  and  a  general  strike  threatened.  The 
company  offered  an  increase  in  wages,  but  not  equal  to 
that  demanded.  The  strike  began  December  26th.  It 
soon  became  general,  and  affected  a  large  number  of 
mines  and  thousands  of  employees. 

December  28th  the  miners'  union  wrote  to  the  Prefect 
of  the  Department  proposing  arbitration,  each  side  to 
appoint  an  arbitrator,  and  if  they  could  not  agree,  for 
them  to  select  a  third,  an  independent  person.  This  was 
accepted  by  the  mine  owners.  M.  Jaures,  the  socialist 
leader,  was  summoned  from  Paris  to  represent  the  men, 
and  M.  Gruner,  the  secretary  of  the  general  Coal  Mine 
Operators'  Association,  was  appointed  to  represent  the 
operators.  It  is  exceedingly  interesting  that  these  two 
men,  representing  in  the  most  extreme  way  labor  and 
capital,  respectively,  should  be  able  to  come  to  an  agree- 
ment without  the  intervention  of  a  third  party,  and  that 
their  decision  should  be  acquiesced  in  by  both  parties. 
This,  however,  was  the  case,  the  decision  being  made 
January  6,  1900.  The  decision  was  that  it  was  just  that 
the  miners  should  profit  to  some  extent  in  the  increased 
prosperity  enjoyed  by  the  mine  owners,  and  that  conse- 
quently wages  should  be  increased  nine  per  cent.,  pro- 
vided that  in  no  case  should  the  increase  be  less  than 
thirty  nor  more  than  fifty  centimes  (six  to  ten  cents)  per 


INDUSTRIAL   CONCILIATION.  137 

day.  The  two  parties  mutually  agreed  to  keep  this 
contract  until  June  30,  1901,  at  which  date  an  arbitra- 
tion tribunal  similar  to  the  one  sitting  could  be  de- 
manded by  either  party  to  determine  what  future  wages 
should  be.  A  few  special  provisions  were  also  made 
regarding  wages  in  particular  mines. 

In  concluding  this  altogether  too  long  account  of 
only  a  few  experiences  in  Great  Britain  and  on  the 
Continent,  it  may  be  well  to  state  some  of  the  more  im- 
portant conclusions  to  which  they  lead  us.  The  system 
of  voluntary  conciliation  and  arbitration,  as  carried  on 
by  private  agreement,  is  elastic  and  applicable  to  all 
conditions.  It  can  be  used  under  the  most  elaborate  or 
under  the  simplest  rules,  It  can  be  proceeded  with 
either  with  or  without  an  umpire  or  referee,  and  proves 
satisfactory  when  the  only  provision  is  that  the  two  sides 
shall  meet  and  attempt  to  settle  the  difficulty  before  an 
appeal  to  harsher  methods.  It  can  succeed  whether  the 
questions  to  be  decided  are  difficult  and  intricate  or 
plain  and  simple.  Contact  on  the  boards  established 
has  fostered  respect  and  good  feeling.  The  employers, 
years  ago,  before  the  establishment  of  such  boards,  by 
holding  themselves  aloof  created  the  impression  that  they 
were  the  dominant,  the  men  the  servient  factor  in  the 
trades.  They  have  now  lost  in  large  measure  their 
autocratic  characteristic,  and  they  meet  the  men  on  an 
equality,  in  a  friendly,  conciliatory  way.  Brought  to- 
gether as  they  have  been,  face  to  face,  in  the  meetings, 
both  sides  have  learned  to  see  things  in  a  clearer  light, 
and,  too,  false  pride  and  obstinacy,  always  barriers  to 
amicable  understanding,  have  been  broken  down.  Open 
discussion  about  a  common  table  has  shown  points  of 
view  either  on  one  side  or  the  other  not  before  thought 


138  INDUSTRIAL   CONCILIATION. 

of  by  the  opposition,  and  very  naturally  a  far  better 
understanding,  on  the  whole,  exists  to-day  than  ever 
before  between  employers  and  employed  wherever  the 
voluntary  boards  are  at  work,  which  must  make  for  peace 
and  happiness  and  be  the  basis  for  all  negotiations  be- 
tween capital  and  labor.  Such  a  condition  cannot  be 
secured  by  government  boards,  where  parties  are  brought 
before  it  in  a  way  to  leave  an  impression  that  they  are 
litigants,  the  result  often  being  to  feed  anew  the  fires 
which  grow  from  the  temper  that  originated  the  dispute. 
The  private  boards  serve  to  allay  all  such  feeling  and  to 
bring  about  a  neighborly  and  harmonious  condition.  To 
create  and  continue  this  good  feeling  care  must  be  taken 
by  the  associations  to  elect  as  their  representatives,  not 
radicals,  but  men  of  strong  common-sense  and  honesty 
of  purpose,  employers  fair  enough  to  see  the  justice  in 
the  case  presented  by  the  men,  and  representatives  of 
the  men  who  have  courage  to  accept  a  decrease  when  the 
situation  demands  it.  In  a  word,  extremists  must  be 
excluded  and  those  alone  chosen  who  seek  the  truth, 
and,  once  finding  it,  are  willing  to  stand  fast  to  the 
agreement  and  urge  its  adoption  by  their  association; 
— and  yet  in  the  settlement  of  the  coal  strike  in  France 
just  described  the  whole  difficulty  was  referred  to  two 
men,  one  representing  the  most  extreme  side  of  the 
socialists  and  the  other  the  most  conservative  side  of  the 
employers;  but  they  were  men  of  sense  and  judgment 
and  easily  came  to  a  conclusion. 

If  men  and  employers  meet  in  all  fairness  and  kind- 
ness, and  are  careful  to  arrange  for  co-operation  and 
mutual  good,  many  of  the  differences  can  be  and  are 
constantly  settled  without  hostilities  of  any  kind.  The 
best  feeling  exists,  and  disturbances  have  been  few 


INDUSTRIAL   CONCILIATION.  139 

where  the  men  are  treated  with  proper  courtesy  and 
frank  interest,  for  the  suspicion  with  which  years  ago  the 
opposing  sides  viewed  each  other  has  in  large  measure 
disappeared  in  Great  Britain  in  those  trades  where  the 
principle  of  conciliation  and  arbitration  has  been  longest 
recognized.  Under  arbitration  as  conducted  in  the 
early  days  the  men  were  unable  to  get  the  facts  with 
which  to  meet  the  masters'  statements.  In  such  arbitra- 
tions each  side  came  to  prove  its  case,  and  the  men 
usually  failed  for  lack  of  data.  This  was  particularly 
the  case  in  the  potteries  trade,  where  the  poor  success 
or  failure  of  the  men  in  arbitrations  caused  so  great  dis- 
satisfaction that  the  board  was  dissolved.  The  men  felt 
they  had  not  been  given  a  fair  hearing  and  could  never 
succeed  under  existing  conditions.  While  they  might 
and  perhaps  did  agree  to  the  award  of  the  umpire,  it 
was  a  sullen  and  not  a  cheerful  acquiescence.  Where 
formerly  it  was  almost  impossible  for  the  men  to  know 
the  facts  concerning  the  state  of  trade  and  the  prices  of 
raw  material  and  the  finished  product,  the  desired  in- 
formation is  now  secured  by  the  aid  of  audits  by  trained 
accountants.  The  testimony  of  some  manufacturers 
is  to  the  effect  that  the  knowledge  so  acquired  has 
satisfied  the  men  as  nothing  else  could,  and  the  confi- 
dence thus  given  has  not  been  violated.  This  has  been  true 
in  those  instances  in  this  country  where  employers  have 
been  willing  to  state  to  their  men  the  exact  conditions 
concerning  the  production  of  their  goods,  and  when  the 
knowledge  so  obtained  showed  that  the  men  misunder- 
stood the  conditions  they  have  withdrawn  their  demands. 
In  this  country  there  are  several  industries  that  have 
had  experiences  similar  to  those  related  of  Great  Brit- 
ain and  the  Continent.  These  are  particularly  the  boot 


140  INDUSTRIAL   CONCILIATION. 

and  shoe  trade,  the  building  trades,  the  foundry  busi- 
ness, coal  mining,  and  some  others.  The  experience 
has  not  been  so  extensive,  of  course,  as  that  abroad,  but 
it  has  been  sufficient  to  convince  many  people  that  each 
trade  can  settle  its  own  troubles  with  much  more  satis- 
factory results  than  it  can  by  outside  parties. 

Personally,  I  have  always  been  in  favor  of  boards  of 
arbitration  of  any  kind.  Any  board  that  will  aid  in 
bringing  about  conciliatory  efforts,  and,  failing  in  them, 
rational  and  discreet  arbitration,  has  appealed  to  me  as 
a  method  to  be  desired,  not  as  a  solution  of  the  great 
labor  struggle  but  as  a  help  of  vast  importance,  and  I 
still  feel  that  the  existence  of  a  board  of  conciliation  and 
arbitration  established  by  States,  to  which  resort  can  be 
had  voluntarily,  has  a  balancing  effect  morally  in  the 
community.  Nevertheless,  I  do  not  hesitate  to  declare 
that  the  real  results  to  be  reached  by  arbitration  and 
conciliation  can  be  secured  far  more  effectively  and  in 
a  far  more  acceptable  manner  through  the  trade  board 
as  it  exists  to-day  in  nearly  all  the  industries  of  England 
than  by  any  other  means. 

It  is  for  this  reason  that  I  have  recited  some  of  the 
principal  experiences  in  the  great  trades  in  England  and 
on  the  Continent.  Such  experiences  must  have  a  far 
greater  effect  than  any  abstract  treatment  of  the  doctrine 
of  conciliation  and  arbitration.  The  doctrine  is  all  right, 
but  what  we  wish  to  know  in  this  country  is  just  how  the 
.doctrine  works  when  practically  applied,  and  the  experi- 
ences I  have  recited  teach  us  that  there  never  was  a  time 
in  industrial  affairs  in  England  when  both  sides  were 
better  organized,  and  never  did  they  work  together  with 
such  harmony.  These  experiences  are  positive  results, 
and  positive  results  need  but  little  comment. 


TRADE   CONCILIATION    AND    ARBITRATION 
IN   THE   UNITED   STATES. 

BY    E.    DANA    DURAND,    SECRETARY    OF    THE   INDUSTRIAL 
COMMISSION. 

I  HAVE  been  asked  briefly  to  describe  the  existing 
practices  in  our  own  country  as  regards  negotiation, 
between  employers  and  employees,  within  the  trades 
themselves, —  what  may  be  somewhat  roughly  termed 
"trade  conciliation  and  arbitration."  In  so  doing  I  de- 
sire to  refrain  from  expressing  judgments  as  to  principles. 

The  United  States  Industrial  Commission,  of  which  I 
have  the  honor  to  be  the  Secretary,  is  engaged  in  a 
thorough  investigation  of  arbitration  and  conciliation. 
It  has  been  so  fortunate  as  to  secure  the  testimony  on 
this  subject  of  a  large  number  of  representatives  of  State 
boards  of  arbitration,  of  employers  and  officers  of  asso- 
ciations of  employers,  and  of  representatives  of  trade- 
unions.  It  has  had  before  it  in  particular  prominent 
representatives  of  practically  all  the  trades  in  which 
peaceful  methods  for  adjusting  the  relations  of  employers 
and  employees  have  been  most  highly  developed.  More- 
over, it  has  by  correspondence  and  by  the  use  of  published 
information  collected  a  large  amount  of  material  on  this 
subject.  It  is  making  studies  of  arbitration  and  concilia- 
tion in  foreign  countries.1 

Strictly  speaking  the  word  "arbitration"  applies  only  to 
'See  ypl,  xvii.,  Reports  Industrial  Commission. — ED. 
141 


142  INDUSTRIAL  CONCILIATION. 

the  comparatively  rare  cases  where  disputes  are  referred 
by  the  parties  to  some  disinterested  person  or  persons 
for  authoritative  decision.  The  term  "conciliation" 
accurately  describes  the  great  variety  of  efforts  of  em- 
ployers and  employees  to  come  to  an  amicable  agreement 
among  themselves  without  calling  in  outside  assistance. 
Conciliation  is  much  broader  than  arbitration.  Arbitra- 
tion proper  is  almost  always  preceded  by  attempts  at  con- 
ciliation; while  conciliatory  methods  are  often  employed 
with  no  provision  for  calling  in  arbitrators  at  all.  The 
greater  part  of  what  I  have  to  say  accordingly  relates  to 
methods  rather  of  conciliation  than  of  arbitration  in  the 
narrower  sense.  It  may  be  noted  that  the  term  "col- 
lective bargaining"  seems  to  be  coming  into  increasing 
use  to  describe  methods  of  negotiation  directly  between 
employers  and  employees,  especially  in  fixing  the  more 
important  terms  of  the  labor  contract. 

While  public  attention  is  usually  directed  especially  to 
the  more  formal  and  permanent  systems  of  conciliation, 
which  have  as  yet  been  established  in  comparatively  few 
trades  in  the  United  States,  we  must  not  lose  sight  of  the 
fact  that  in  countless  cases,  including  almost  every  in- 
dustry, peaceful  settlements  of  differences  as  to  the  terms 
of  labor  are  secured  by  less  formal  methods  of  negotia- 
tion. These  methods  take  on  many  varying  forms.  As 
a  matter  of  fact,  wherever  working  men  are  organized, 
and  wherever  that  organization  is  recognized  by  an  em- 
ployer, the  terms  of  the  labor  contract  cease  to  be  de- 
termined solely  and  in  every  instance  by  the  dictate  of 
the  employer,  by  the  dictate  of  the  employees,  or  by 
victory  in  strike  or  lockout.  Under  these  two  condi- 
tions, negotiation  and  conciliation  enter  in  to  a  greater 
or  less  degree, 


INDUSTRIAL   CONCILIATION.  143 

A  very  large  number  of  trade-unions  have  in  their 
constitutions  declarations  of  a  general  character  to  the 
effect  that  strikes  are  in  themselves  undesirable  and 
should  be  resortefl  to  only  in  extreme  cases,  "after  the 
failure,"  to  quote  a  common  phrase,  "of  all  honorable 
attempts  at  peaceful  settlement ' ' ;  and  that  conciliation 
and  arbitration  should  be  sought  wherever  possible. 
These  expressions  are  so  strong  in  many  cases  as  to 
seem  to  commit  the  union  most  unequivocally  to  a 
conciliatory  policy.  Moreover,  trade-union  rules,  prob- 
ably without  exception,  provide  that  attempts  at  ne- 
gotiation with  employers  shall  be  made  before  any  strike 
is  entered  upon.  Either  the  regular  officers  of  the 
union,  or  specially  chosen  committees,  are  required  to 
confer  with  employers,  if  the  employers  will  permit  it, 
regarding  the  demands  and  grievances.  Such  con- 
ferences are  frequently  designated  by  the  unions  as 
"arbitration,"  and  such  committees  as  "arbitration  com- 
mittees." The  provisions  regarding  them  are  often 
quite  elaborate. 

These  provisions  of  trade-union  constitutions  and 
rules  however  by  no  means  always  indicate  a  truly  con- 
ciliatory spirit  on  the  part  of  the  great  body  of  the  mem- 
bers. It  is  frequently  the  case  that  the  representatives 
of  the  unions,  the  so-called  arbitration  committees,  ap- 
proach employers  in  an  attitude  by  no  means  calcu- 
lated to  promote  a  peaceful  settlement.  Just  so,  on  the 
other  hand,  employers  often  meet  the  representatives  of 
their  men,  but  are  unwilling  to  make  any  concessions 
or  to  treat  with  them  in  a  truly  amicable  manner. 
Nevertheless  there  are  many  instances  where  expressions 
in  trade-union  rules  of  the  character  referred  to  spring 
from  a  really  conciliatory  spirit  among  the  members. 


144  INDUSTRIAL   CONCILIATION. 

There  are  many  employers,  and  the  number  seems  to  be 
constantly  increasing,  who  are  prepared  to  deal  with 
their  employees  in  the  same  spirit.  To  the  degree  to 
which  these  conditions  prevail,  peaceful  negotiation 
tends  to  supplant  conflict.  The  importance  of  these 
informal  methods  must  not  be  underestimated.  They 
are  found  more  or  less  in  connection  with  every  trade, 
and  they  widen  their  scope  and  increase  their  effective- 
ness with  every  advance  in  intelligence  among  employers 
or  employees. 

Informal  conciliation  of  this  sort  is  especially  effective 
in  those  trades  in  which  the  local  unions  are  united  into 
strong  national  bodies.  When  a  national  organization 
pays  benefits  to  the  members  of  local  unions  on  strike, 
the  national  officers  are  naturally  given  a  very  consider- 
able degree  of  control  over  the  inauguration  of  strikes. 
The  constitutions  of  well  established  national  unions 
usually  refuse  to  sanction  any  strike  unless  all  the  fol- 
lowing steps  have  first  been  taken:  first,  thorough  efforts 
at  negotiation  with  employers  on  the  part  of  the  local 
unions  affected;  second,  a  determination,  by  a  two 
thirds  or  three  fourths  majority  of  the  local  members,  on 
secret  ballot,  to  insist  on  the  demands  made;  next,  ap- 
proval by  the  national  officers  of  the  position  the  locals 
have  taken ;  and  finally,  the  most  exhaustive  efforts  on 
the  part  of  these  officers,  in  person  or  by  deputy,  to 
obtain  a  peaceful  settlement  of  the  differences.  These 
national  officers  are  in  many  cases  men  of  high  intelli- 
gence and  of  long  experience  as  to  labor  disputes.  They 
are  largely  free  from  the  personal  feeling  and  the  narrow- 
ness which  are  apt  to  characterize  the  local  unions  in 
their  conflicts  with  employers.  By  their  intervention 
accordingly  they  are  often  able  to  prevent  strikes  or  to 


INDUSTRIAL   CONCILIATION.  145 

secure  satisfactory  settlement  of  disputes  by  conciliatory 
methods.  Perhaps  the  most  noteworthy  success  in  this 
direction  has  been  attained  by  the  conservative  and  in- 
telligent officers  of  the  Bricklayers'  and  Masons'  Inter- 
national Union. 

American  experience  shows  clearly  that  organization 
among  employers  makes  possible  higher  forms  of  negotia- 
tion as  to  the  terms  of  employment  than  can  exist  merely 
between  individual  employers  and  organized  laborers. 
The  formation  of  associations  of  employers  in  this 
country  has  lagged  far  behind  the  development  of  unions 
among  working  men.  Gradually,  however,  doubtless  in 
part  under  the  pressure  of  organized  labor,  employers 
in  not  a  few  trades  have  come  to  realize  the  advantages 
of  systematic  collective  action  in  their  dealings  with  em- 
ployees, not  only  in  giving  additional  strength,  but  also 
in  securing  more  uniform  cost  of  labor  and  consequently 
more  equal  competition.  Where  such  associations  of 
employers  exist,  conciliatory  methods  are  more  often 
found  than  where  employers  deal  as  individuals  with  the 
unions. 

It  is  a  common  custom  in  many  trades  to  make  written 
agreements,  usually  annual,  regarding  the  terms  of  labor. 
They  are  made  by  labor  organizations  either  with  in- 
dividual employers  or  with  associations  of  employers. 
They  regulate  wages,  hours,  overtime,  time  of  paying 
wages,  apprenticeship,  and  often  a  considerable  number 
of  minor  details.  A  not  uncommon  provision  is  that 
only  members  of  the  trade-union  shall  be  employed, 
while  associations  of  employers  occasionally  make  the 
counter-stipulation  that  the  men  shall  work  only  for 
members  of  the  association. 

The  great  majority  of  agreements  of  this  type   are 


146  INDUSTRIAL    CONCILIATION. 

local,  covering  a  single  establishment  or  a  single  town  or 
city.  Such  local  agreements  are  quite  common  in  the 
various  building  trades.  They  are  very  general  also 
among  the  brewery  workmen,  the  hotel  employees,  the 
bakers,  the  hatters,  the  metal  polishers,  the  garment 
workers,  the  granite  cutters,  the  electrical  workers,  and 
several  other  classes  of  workmen,  while  they  are  found 
less  frequently  in  many  other  trades. 

It  must  not  be  supposed  that  such  joint  agreements 
necessarily  show  a  highly  developed  spirit  or  system  of 
conciliation.  It  is  true  that  a  considerable  proportion 
of  the  agreements  provide  for  arbitration  of  disputes  as 
to  their  interpretation  or  violation — usually  by  a  com- 
mittee consisting  of  an  equal  number  of  representatives 
of  each  side,  with,  in  many  cases,  an  impartial  person  to 
be  selected  by  them  as  umpire.  It  is  true  also  that 
minor  matters  are  often  satisfactorily  settled  by  these 
arbitration  committees.  On  the  other  hand,  such  com- 
mittees are  not  usually  permanent,  but  are  left  to  be 
selected  for  each  special  emergency.  Their  decisions 
often  have  little  binding  force.  Even  the  terms  of  the 
agreements  themselves  are  quite  frequently  violated, 
secretly  or  openly,  by  one  party  or  the  other.  In  the 
building  trades  it  is  often  stipulated  that  sympathetic 
strikes  shall  not  be  considered  a  violation  of  agreement. 
Finally  such  agreements  usually  fail  to  provide  formally 
for  their  own  renewal  by  conciliatory  methods.  They 
do  not  establish  a  joint  board,  or  other  system  for  secur- 
ing regular  and  amicable  discussion  as  to  the  general 
terms  of  the  future  labor  contract.  As  a  matter  of  fact, 
apparently,  a  considerable  proportion  of  these  joint 
agreements  are  proposed  in  the  first  instance  by  the  trade- 
unions,  with  a  demand  that  the  employers  sign  them, 


INDUSTRIAL   CONCILIATION.  147 

under  threat  of  a  strike  in  the  event  of  failure  to 
do  so. 

Despite  these  defects  which  appear  in  some  instances 
this  system  of  local  joint  agreements  has  in  many  cases 
accomplished  noteworthy  results  in  checking  strikes  and 
lockouts  and  in  promoting  really  conciliatory  relations 
between  employers  and  employees.  Although  agree- 
ments may  at  times  be  violated,  they  usually  serve  to 
prevent,  so  long  as  they  continue,  actual  cessation  of 
work  on  account  of  labor  disputes.  The  provision  for 
conciliation  and  arbitration  as  to  minor  matters,  which 
is  so  commonly  found,  tends  to  bring  masters  and  men 
into  personal  contact,  and  to  create  a  spirit  which  shall 
render  possible  also  peaceful  negotiations  as  to  the  gen- 
eral terms  of  employment.  The  existence  of  a  written 
agreement  itself  tends  to  foster  some  recognition  of  one 
another's  rights.  Indeed  in  many  cases,  although  no 
permanent  joint  conferences  or  committees  for  drawing 
up  agreements  are  formally  provided  for,  they  are  never- 
theless actually  drawn  up  in  amicable  conference;  they 
represent  mutual  concession  between  informally  chosen 
representatives  of  the  respective  sides.  Under  such  cir- 
cumstances the  joint  agreement  system  becomes  an  im- 
portant and  effective  method  of  furthering  industrial 
peace. 

Among  the  few  instances  of  permanent  and  formal 
systems  of  collective  bargaining  or  conciliation  of  a 
purely  local  character  are  those  in  the  building 
trades,  and  these  are  mainly  confined  to  the  brick- 
layers and  masons.  The  National  Association  of 
Builders,  of  which  Mr.  W.  H.  Sayward  has  long  been 
the  Secretary  and  the  most  active  force,  fully  ten  years 
ago  recommended  to  the  various  local  associations  of 


148  INDUSTRIAL   CONCILIATION. 

contracting  builders  represented  in  the  national  organi- 
zation that  they  should  establish  joint  boards  of  arbitra- 
tion and  conciliation.  The  recommendation  has  been 
carried  out  only  to  a  very  limited  extent.  The  system 
has  been  established  most  fully  in  Mr.  Sayward's  own 
city  of  Boston,  where  permanent  agreements  have  been 
made  by  the  builders  with  the  bricklayers  and  masons, 
the  hod-carriers  and  two  or  three  other  trades,  providing 
for  joint  committees  which  shall  annually  frame  con- 
tracts as  to  the  terms  of  labor,  and  which  shall  also 
decide  disputes  arising  from  time  to  time.  These  agree- 
ments further  provide  for  the  appointment  of  an  impartial 
umpire  to  decide  cases  where  the  committees  themselves 
fail  to  agree;  a  thing  which  is  very  unusual  in  this 
country.  As  a  matter  of  fact  umpires  have  been  called 
in  two  or  three  times  to  decide  relatively  important  mat- 
ters. The  result  of  this  system  has  been  that  for  more 
than  a  decade  there  have  been  no  strikes  in  Boston  in  the 
trades  covered  by  it,  while  the  existence  of  these  methods 
in  part  of  the  building  trades  is  reported  to  have  had  a 
powerful  effect  in  checking  strikes  and  lockouts  in  the 
others  also. 

In  New  York  City  also  a  joint  agreement  of  this  sort 
has  existed  for  a  considerable  number  of  years  between 
the  Mason  Builders'  Association  and  the  various  unions 
of  bricklayers  and  masons,  and  the  system  has  been  in- 
troduced to  some  extent  in  other  building  trades  in  that 
city.  Here  again  strikes  have  been  practically  abolished 
in  the  trades  affected. 

\  Somewhat  formal  systems  of  local  conciliation  and 
arbitration  have  also  existed  from  time  to  time  in  the 
boot  and  shoe  trade,  and  during  their  persistence  have 
been  reasonably  effective  in  promoting  peaceful  rela- 


INDUSTRIAL   CONCILIATION.  149 

tions.  At  present  the  only  system  of  this  sort  which 
covers  more  than  a  single  establishment  is  found  in 
Philadelphia,  where  a  joint  board  has  been  formed  by 
the  local  organizations  of  manufacturers  and  of  opera- 
tives. This  Philadelphia  board,  which  has  existed  about 
fifteen  years,  is,  however,  severely  criticised  by  the 
National  Union  of  Boot  and  Shoe  Workers,  as  being  too 
much  under  the  control  of  the  employers.  The  national 
union  itself  has  joint  agreements  with  many  important 
individual  manufacturers.  These  agreements  regulate 
the  conditions  of  labor  and  provide  for  the  reference  of 
disputes  to  joint  committees  and  umpires  or  to  the  State 
board  of  arbitration. 

The  practice  of  peaceful  negotiation  has  been  very 
highly  developed  between  the  railroad  companies  and 
the  more  skilled  and  more  highly  organized  classes  of 
their  employees.  The  brotherhoods  of  conductors, 
engineers,  firemen,  and  trainmen  especially  embrace 
very  nearly  all  the  members  of  their  respective  crafts. 
Over  against  them  stand  great  railroad  systems,  which 
are  in  a  position  to  negotiate  effectively,  and  which  need 
the  assurance  of  uninterrupted  service  that  can  be 
obtained  only  in  this  way.  It  is  the  practice  of  each  of 
these  strong  brotherhoods  to  establish  for  each  railroad 
system  a  committee  composed  of  representatives  of  the 
various  local  lodges  or  divisions  along  the  road.  These 
committees,  which  not  infrequently  employ  trained  and 
salaried  experts  to  assist  them,  confer  with  employers, 
not  merely  as  to  minor  matters  of  dispute  arising  under 
the  existing  terms  of  employment,  but  also  as  regards 
the  conditions  of  future  labor.  No  strike  can  be  author- 
ized except  after  efforts  at  settlement  by  these  commit- 
tees, or,  in  case  they  fail,  by  the  national  officers  of  the 


I5O  INDUSTRIAL   CONCILIATION. 

brotherhoods  themselves.  On  many  important  railroads 
this  system  of  negotiation  is  supplemented  by  written 
agreements  as  to  the  terms  of  labor.  The  result  of  these 
methods  is  that  strikes  are  of  rare  occurrence  among  the 
more  skilled  branches  of  the  railway  service.  The  same 
system  of  negotiation  and  joint  agreements  exists,  to  some 
extent  but  in  a  much  less  developed  form,  among  the 
less  skilled  and  less  strongly  organized  railroad  em- 
ployees. 

Finally  we  come  to  consider  the  systems  of  collective 
bargaining,  conciliation,  and  arbitration  which  are  of 
more  general  scope  than  those  so  far  described.  In 
several  important  trades  annual  joint  agreements  as  to  the 
conditions  of  labor,  especially  wage  scales,  are  regularly 
adopted,  which  cover  either  the  whole  trade  throughout 
the  country,  or  a  large  fraction  of  it.  For  the  adoption 
of  these  agreements,  more  or  less  formal  methods  of 
negotiation  have  been  established,  and  in  some  trades 
highly  elaborated  machinery  for  the  settlement  of  dis- 
putes has  been  introduced. 

This  system  of  joint  agreements  on  a  large  scale  was 
first  established  in  the  iron  and  steel  trades  represented 
in  the  Amalgamated  Association  of  Iron,  Steel,  and  Tin 
Workers.  There  the  practice  dates  from  the  sixties. 
Quite  recently  some  classes  of  tin-plate  workers  have 
formed  a  separate  association  and  adopted  a  system  in 
close  imitation  of  that  of  the  Amalgamated  Association. 
Since  1891  a  joint  agreement  has  existed  between  the 
Stove  Founders'  National  Defence  Association  and  the 
Iron  Moulders'  Union.  This  agreement  itself  contains 
a  number  of  general  provisions  as  to  the  terms  of  labor. 
Local  and  district  conciliation  committees  are  estab- 
lished. Any  dispute  may,  after  failure  of  efforts  to  settle 


INDUSTRIAL   CONCILIATION.  151 

it  locally,  be  referred  to  a  central  committee  composed  of 
equal  numbers  of  employers  and  employees.  This  com- 
mittee also  adopts  annual  agreements  as  to  matters  of 
common  concern  to  the  entire  trade.  More  recently 
this  system  in  some  of  its  features  has  been  copied  by 
the  National  Founders'  Association  in  its  dealings  with 
the  Iron  Moulders'  Union.  During  the  present  year  the 
machinery  manufacturers,  organized  into  the  National 
Metal  Trades  Association,  have  entered  into  an  agree- 
ment with  the  International  Association  of  Machinists, 
following  closely  the  methods  of  the  organizations  of 
foundrymen.1  In  the  various  branches  of  the  glass  trade 
annual  wage  scales  and  joint  conferences  have  been 
customary  for  many  years.  The  potters  have  established 
methods  very  similar  to  those  of  the  glass  workers.  The 
largest  body  of  working  men  affected  by  a  system  of 
joint  agreements  and  conciliation  of  this  kind  is  the 
bituminous  coal  miners  of  the  four  great  central  coal 
States,  Pennsylvania,  Ohio,  Indiana,  and  Illinois.  Joint 
agreements  in  the  coal  industry,  indeed,  have  existed 
from  time  to  time  for  the  past  thirty  years,  but  the 
system  never  acquired  a  firm  hold  or  was  thoroughly 
organized  until  within  the  past  three  or  four  years. 
The  longshoremen  on  the  Great  Lakes  also  hold  joint 
conferences  with  various  organizations  of  employers, 
and  adopt  annual  agreements,  which  provide  also  for 
settlement  of  minor  disputes. 

Such  wide-reaching  methods  of  negotiation  as  to  the 
terms  of  labor  are  found  only  in  trades  where  both  sides 
are  strongly  organized.  The  agreements  reached  pur- 
port to  bind  a  large  proportion  of  the  employers  and 
employees  in  the  industry.  Naturally  those  on  either 

1  This  system  was  afterwards  broken  up. 


152  INDUSTRIAL  CONCILIATION. 

side  will  be  disposed  to  abide  by  the  agreements  only  if 
they  are  represented  in  the  association  by  which  they 
are  made.  Again  the  national,  or  general,  conferences 
between  the  representatives  of  the  respective  organiza- 
tions are  for  the  most  part  more  systematic  and  formal 
than  those  by  which  local  agreements  are  reached.  In 
some  instances  there  are  regularly  established  joint  com- 
mittees, consisting  of  an  equal  number  of  representatives 
of  the  employers  and  of  the  employees.  In  the  case  of 
the  two  systems  in  the  foundry  trades,  and  of  that  in 
the  machinery  trade,  these  committees  can  (at  least 
nominally)  make  decisions  by  majority  vote.  In  one  or 
two  other  instances,  as  in  the  coal  trade,  it  is  required 
that  every  important  action  shall  be  by  unanimous  vote 
of  the  joint  committee;  that  is,  the  representatives  of 
each  side  practically  act  as  a  unit  and  come  to  an  agree- 
ment by  mutual  concession.  In  the  glass  and  the  iron 
and  steel  trades  the  conferences  themselves  are  less 
formally  organized.  No  attempt  is  made  to  secure  an 
equal  number  of  representatives  of  the  two  sides,  and 
agreements  must  be  reached  by  mutual  consent  rather 
than  by  formal  vote.  It  is  noteworthy  that  in  none  of 
the  national  systems  we  have  mentioned  is  it  the  practice 
to  refer  any  differences  as  to  the  general  terms  of  labor  to 
a  disinterested  arbitrator.  There  is,  to  be  sure,  a  pro- 
vision, in  two  or  three  of  the  systems,  that  minor  matters, 
especially  as  to  the  interpretation  of  the  general  agree- 
ments, shall,  if  necessary,  be  referred  to  an  outside 
person.  Both  employers  and  employees  seem  to  be 
distinctly  opposed  to  the  idea  of  allowing  any  person 
who  is  not  connected  with  the  trade  and  familiar  with 
all  its  complicated  conditions  to  determine  the  conditions 
of  labor,  unless  under  the  most  extreme  circumstances. 


INDUSTRIAL  CONCILIATION.  153 

The  general  conferences  of  which  we  have  been 
speaking  are  chiefly  occupied  with  determining  broad 
questions,  with  establishing  the  general  terms  of  the 
labor  contract.  But  where  the  policy  of  conciliation  as 
to  these  matters  exists,  there  is  naturally  a  disposition  to 
settle  the  lesser  questions  also  in  an  amicable  manner. 
In  the  trades  under  consideration  minor  disputes  are  for 
the  most  part  satisfactorily  adjusted  by  local  negotiation 
between  the  parties  directly  concerned,  or  sometimes  by 
joint  committees  of  conciliation  and  arbitration  more 
or  less  formally  constituted.  In  several  trades  there  is 
opportunity  for  appeal  to  the  national  officers  or  repre- 
sentatives of  the  respective  organizations  of  employers 
and  employees.  In  the  stove  foundry  trade,  for  in- 
stance, the  same  board  which  adopts  annual  agreements 
may  act  on  any  such  appeal.  Among  some  branches  of 
the  iron  and  steel  trade  certain  technical  differences  of  a 
minor  character  are  left  largely  to  the  decision  of  a  paid 
and  trained  adjuster. 

The  iron  and  steel  trades  present  the  only  successful 
illustration  in  the  United  States  of  the  system  of  sliding 
scales.  For  many  years  the  wages  paid  for  certain 
classes  of  work  in  these  industries  have  been  made  to 
vary  in  proportion  to  the  rise  and  fall  of  the  prices  of  the 
products.  The  system  is  considered  highly  satisfactory 
by  both  employers  and  employees,  although  the  latter 
insist  that  they  would  not  be  willing  to  accept  it  without 
the  provision  fixing  a  minimum  below  which  wages  shall 
not  fall.  The  sliding  scale  has  been  used  more  or  less 
extensively  in  the  anthracite  coal  fields,  but  for  various 
reasons  the  system  as  established  there  has  almost  from 
the  outset  been  extremely  distasteful  to  the  employees.  In 
Great  Britain  sliding  scales  are  somewhat  more  common. 


154  INDUSTRIAL   CONCILIATION. 

The  American  experience  as  regards  joint  agreements 
and  conciliation  on  a  large  scale  is  thus  limited  to  a  com- 
paratively few  trades,  and  in  several  of  these  is  as  yet 
only  very  recent.  England  has  developed  the  system  far 
more  extensively.  Even  the  experience  in  this  country 
goes  far  toward  showing  that  strikes  and  lockouts  may 
be  largely  done  away  with  where  conferences  and  agree- 
ments between  strong  national  organizations  of  employers 
and  employees  exist.  Agreements  between  national  or- 
ganizations have  been  less  often  violated  during  their 
term  than  local  agreements.  The  officers  of  national 
associations,  both  of  employers  and  employees,  are 
usually  men  of  sound  judgment  and  of  long  experience. 
Especially  where  these  officers  come  in  frequent  contact 
with  one  another  under  such  a  system  of  conferences 
as  we  have  been  describing,  they  acquire  wisdom  in 
their  treatment  of  labor  matters.  Each  side  learns  to 
respect  the  other.  Thus,  after  a  time,  negotiations  are 
likely  to  become  thoroughly  amicable  and  businesslike, 
while  these  same  officers  who  are  most  active  in  framing 
agreements  are  usually  able  to  keep  the  members  of  their 
associations  in  line  in  ratifying  them  and  abiding  by 
them.  The  conference  committees  seldom  fail  to  agree 
as  to  the  annual  labor  contract,  and  there  is  seldom  any 
refusal  on  the  part  of  the  body  of  employers  or  of  working 
men  to  sanction  the  agreement.  Occasionally,  to  be 
sure,  strikes  or  lockouts  occur  in  connection  with  the 
adoption  of  new  agreements,  but  when  the  system  of 
joint  conferences  is  once  thoroughly  established,  it 
ususally  produces  a  spirit  on  both  sides  which  greatly 
lessens  the  likelihood  of  industrial  warfare. 


CONFERENCES    OF    IRON    MOULDERS'    AND 
FOUNDERS'    ASSOCIATIONS. 

BY    MARTIN    FOX,    PRESIDENT     OF    THE    IRON    MOULDERS' 
UNION    OF   NORTH    AMERICA. 

ALL  who  have  given  the  subject  of  strikes  and  labor 
disputes  any  consideration  must  agree  that  they 
are  indications  of  discontent  on  the  part  of  the  workers, 
against  the  wages  or  conditions  under  which  they  are 
required  to  labor  by  the  employing  interests.  As  indus- 
tries have  expanded  and  become  more  diversified  with 
the  progress  of  the  century,  the  friction  between  the  two 
factors  of  industry  has  increased.  Competition  became 
keener;  it  became  necessary  to  economize  at  every  pos- 
sible point,  in  order  to  maintain  a  position  in  the  market. 
Wages,  while  labor  remained  in  an  unorganized  condi- 
tion, was  always  one  of  the  first  points  on  which  the 
economizing  policy  was  applied.  It  was  not  surprising, 
therefore,  that  the  individual  laborer,  finding  himself  thus 
at  the  mercy  of  changing  conditions,  should  have  seen  in 
combination  an  effective  force  with  which  to  protect  him- 
self. In  the  latter  half  of  the  century,  trade-unions 
grew  rapidly  in  power.  Their  earlier  efforts  were  con- 
ducted on  the  more  primitive  methods  of  might  being 
right.  The  employer  and  the  employee  seemed  to  re- 
gard each  other  as  natural  enemies,  and  the  antagonism, 
of  course,  extended  to  the  organization  of  the  employee, 

155 


156  INDUSTRIAL   CONCILIATION. 

with  the  result  that  the  efforts  of  the  employing  interests 
were  often  directed  towards  crushing  the  organizations 
of  labor;  and,  on  the  other  hand,  I  will  frankly  admit, 
when  the  time  was  opportune,  instances  are  not  lacking 
where  organizations  of  labor  have  forced  arbitrary  con- 
ditions upon  the  employers. 

Such  a  condition  of  affairs  could  not  always  prevail. 
Bitter  experience,  and  a  more  intelligent  conception  of 
the  labor  problem,  convinced  the  more  broad-minded 
element  of  both  sides  to  the  controversy  that  justice 
could  never  be  done,  nor  could  satisfactory  relations 
ever  be  established  between  the  employer  and  the  em- 
ployee, by  a  policy  in  which  each  was  disposed  to  push 
his  advantage  to  the  utmost,  without  regard  to  the  in- 
terests or  welfare  of  the  other.  It  was  realized,  too,  that 
while  the  employer's  capital  was  invested  in  an  industry, 
the  workman's  capital,  in  the  shape  of  his  labor,  was 
also  invested  in  it,  and  that  there  was  a  mutual  interest 
in  its  success. 

It  is  scarcely  necessary  to  point  out  that  strikes  were 
extremely  unprofitable  to  both  interests  involved,  and 
that,  notwithstanding  their  success  or  non-success,  they 
invariably  left  behind  a  bitter  feeling,  which  augured  ill 
for  the  future  harmony  of  the  working  force  and  the 
management,  which,  it  will  be  admitted,  was  not  con- 
ducive to  the  best  results  of  their  co-operation. 

The  Iron  Moulders'  Union,  which  I  have  the  honor 
to  represent  as  its  President,  has  had  its  full  experience 
of  strikes  since  its  organization  in  1859.  In  1886  a  new 
element  was  interjected  into  the  industrial  warfare  which 
it  had  ceaselessly  waged.  It  was  in  the  stove-manufac- 
turing branch  of  the  iron-moulding  trade.  Learning, 
no  doubt,  the  lesson  the  workman  had  learned — that  in 


INDUSTRIAL   CONCILIATION.  157 

combination  they  possessed  greater  power  of  offence  or 
defence  than  when  they  acted  in  their  individual  capacity 
— the  stove  manufacturers,  who  had  for  some  years 
been  associated  for  the  purpose  of  discussing  matters  of 
general  interest  to  the  industry,  formed  what  is  known 
as  the  Stove  Founders'  National  Defence  Association. 
In  the  year  1887,  that  Association  and  the  Iron  Mould- 
ers' Union  of  North  America  first  clashed.  The  struggle 
was  a  bitter  one,  and  while  at  its  conclusion  neither  side 
could  claim  a  decisive  victory,  it  left  each  with  a  better 
appreciation  of  the  other's  power,  and  emphasized  the 
disastrous  results  that  might  be  expected  to  ensue  from 
a  series  of  conflicts  between  such  powerful  associations. 
The  active  spirits  of  both  finally  met  in  conference,  in 
1891,  and  the  result  was  the  formulation  of  what  I  be- 
lieve to  be  the  first  agreement  in  this  country  which  pro- 
vided for  the  application  of  the  principles  of  voluntary 
arbitration — or  perhaps  it  might  be  better  named  volun- 
tary conciliation— in  disputes  arising  between  members 
of  an  employers'  association  and  members  of  a  trade- 
union.  This  agreement  simply  recited  general  principles 
and  provided  means  for  their  practical  application  to 
trade  problems  as  they  were  known  to  exist  by  the 
representatives  of  the  two  associations.  The  following 
extract  from  that  first  agreement  will  place  the  matter 
more  clearly  before  you : 

"  RESOLVED,  That  this  meeting  adopt  the  principle  of  arbitration 
in  the  settlement  of  any  dispute  between  the  members  of  the  I.  M. 
U.  of  N.  A.  and  the  members  of  the  S.  F.  N.  D.  A.  ; 

"  That  a  conference  committee  be  formed,  consisting  of  six  mem- 
bers, three  of  whom  shall  be  stove  moulders  appointed  by  the  Iron 
Moulders'  Union  of  North  America,  and  three  persons  appointed  by 
the  S.  F.  N.  D.  A.,  all  to  hold  their  offices  from  May  i  to  April 
30  of  each  year. 


158  INDUSTRIAL   CONCILIATION. 

"Whenever  there  is  a  dispute  between  a  member  of  the  S.  F.  N. 
D.  A.  and  the  moulders  in  his  employ,  and  it  cannot  be  settled 
amicably  between  them,  it  shall  be  referred  to  the  presidents  of  the 
two  associations  before  named,  who  shall  themselves  or  by  delegates 
give  it  due  consideration.  If  they  cannot  decide  it  satisfactorily  to 
themselves,  they  may,  by  mutual  agreement,  summon  the  confer- 
ence committee,  to  whom  the  dispute  shall  be  referred,  and  whose 
decision  by  a  majority  vote  shall  be  final  and  binding  upon  each 
party  for  the  term  of  twelve  months. 

"Pending  adjudication  by  the  presidents  and  conference  com- 
mittee, neither  party  to  the  dispute  shall  discontinue  operations,  but 
shall  proceed  with  business  in  the  ordinary  manner." 

The  wage  rate,  being  the  most  prolific  source  of  fric- 
tion, was  the  one  most  carefully  provided  for.  There 
were  other  matters,  affecting  shop  management  and  con- 
ditions, upon  which  at  this  time  no  agreement  was  pos- 
sible, and  it  was  wisely  determined  to  allow  time,  and 
the  education  which  must  result  from  annual  contact  and 
conference,  to  bring  its  influence  to  bear,  before  at- 
tempting to  secure  an  understanding  upon  them. 

It  gives  me  pleasure  to  say — and  the  members  of  this 
National  Civic  Federation  will  agree  that  it  is  a  striking 
proof  of  the  success  of  the  application  of  a  policy  of 
conciliation  in  the  stove-manufacturing  industry — that, 
since  the  1891  agreement  was  ratified,  there  has  been  no 
conflict  between  members  of  the  two  associations,  and 
no  dispute  that  has  arisen  has  refused  to  yield  to  the 
application  of  its  provisions. 

While  this  was  the  first  practical  application  of  the 
principles  of  arbitration  to  disputes  arising  in  any  branch 
of  our  trade,  I  might  add  that  as  early  as  1876  a  referen- 
dum vote  of  the  membership  of  the  Iron  Moulders'  Union 
had  declared  in  favor  of  the  arbitration  of  trade  disputes, 
but  had  not  been  able  to  successfully  put  this  policy  in 


INDUSTRIAL   CONCILIATION.  159 

operation,  because  there  was  no  association  of  employ- 
ers with  whom  to  enter  into  such  a  contract.  When  a 
dispute  arose  between  a  stove  manufacturer  and  his  men, 
and  negotiations  between  their  immediate  representatives 
failed,  there  was  at  once  an  open  rupture,  and  when 
that  has  occurred,  it  is  difficult,  indeed,  to  arbitrate.  In 
the  agreement  to  which  I  have  referred,  cognizance  was 
taken  of  that  fact,  and  one  of  its  clauses  provided  that 
the  members  of  neither  association  should  be  governed 
by  their  impulses,  but — and  I  desire  to  emphasize  the 
point — should  remain  at  work  pending  investigation  by 
the  proper  officers  of  the  two  associations. 

From  my  experience  with  this  successful  attempt  at 
conciliation  and  arbitration  of  industrial  differences,  I 
am  led  to  deduce: 

First — That  both  the  employing  and  employed  in- 
terests must  be  organized  into  associations  which  sub- 
scribe to  the  principle  that  capital  and  labor  have  an 
equal  voice  in  the  fixing  of  wages  and  conditions  of 
labor,  before  the  principles  of  conciliation  or  voluntary 
arbitration  can  be  successfully  applied. 

Second — That  the  more  thorough  that  organization, 
on  both  sides,  the  better  the  ultimate  results. 

Third — That  work  should  continue,  without  interrup- 
tion, pending  arbitration. 

Fourth — That,  inasmuch  as  it  is  only  through  the 
existence  of  an  organization  of  the  working  men  inter- 
ested that  arbitration  can  be  successfully  undertaken, 
employers  should  encourage  their  growth  and  extension. 

Fifth — That  when  the  dispute  arises  over  some  tech- 
nical detail  of  a  trade,  upon  which  there  has  been  no 
general  agreement  on  the  part  of  the  associations  of 
employers  and  workmen,  a  conciliatory  policy  should 


l6o  INDUSTRIAL  CONCILIATION. 

be  pursued  by  both  parties,  and  an  effort  made  to  settle 
by  common-sense  methods,  with  a  due  regard  to  the 
custom  and  precedent  of  the  locality  in  which  the  dis- 
pute arises. 

Our  success  in  applying  the  principles  of  voluntary 
arbitration  in  disputes  arising  in  the  stove  trade  inclined 
us  to  view  with  some  gratification  the  tendency  of  the 
foundrymen  in  other  branches  of  the  trade  to  form  an 
association  on  the  same  lines  as  the  Stove  Founders' 
National  Defence  Association.  And  when  the  National 
Founders'  Association  was  finally  launched  on  its  career, 
I,  as  President  of  the  Iron  Moulders'  Union,  made  ad- 
vances, with  a  view  to  consummating  an  agreement 
such  as  we  already  had  in  the  stove  trade.  These 
advances  were  met  in  a  friendly  spirit,  and  in  March, 
1899,  representatives  of  the  two  associations  met  in  New 
York,  and  ratified  the  following  agreement,  since  known 
as  the  "  New  York  Agreement  " : 

"WHEREAS,  The  past  experience  of  the  members  of  the  National 
Founders'  Association  and  the  Iron  Moulders'  Union  of  North 
America  justifies  them  in  the  opinion  that  any  arrangement  entered 
into  that  will  conduce  to  the  greater  harmony  of  their  relations  as 
employers  and  employees  will  be  to  their  mutual  advantage  ;  there- 
fore be  it 

"RESOLVED,  That  this  Committee  of  Conference  endorse  the 
principle  of  arbitration  in  the  settlement  of  trade  disputes,  and 
recommend  the  same  for  adoption  by  the  members  of  the  National 
Founders'  Association  and  the  Iron  Moulders  Union  of  North 
America  on  the  following  lines  : 

"  That  in  the  event  of  a  dispute  arising  between  members  of  the 
respective  organizations,  a  reasonable  effort  shall  be  made  by  the 
parties  directly  at  interest  to  effect  a  satisfactory  adjustment  of 
the  difficulty  ;  failing  to  do  which,  either  party  shall  have  the  right 
to  ask  its  reference  to  a  Committee  of  Arbitration,  which  shall  con- 
sist of  the  presidents  of  the  N.  F.  A.  and  the  I.  M.  U.  of  N.  A.,  or 


INDUSTRIAL   CONCILIATION.  l6l 

their  representatives,  and  two  other  representatives  from  each 
association  appointed  by  the  respective  presidents. 

"  The  finding  of  this  Committee  of  Arbitration,  by  majority  vote, 
shall  be  considered  final,  in  so  far  as  the  future  action  of  the  re- 
spective organizations  is  concerned. 

"  Pending  adjudication  by  the  Committee  of  Arbitration,  there 
shall  be  no  cessation  of  work  at  the  instance  of  either  party  to  the 
dispute. 

"  The  Committee  of  Arbitration  shall  meet  within  two  weeks  after 
reference  of  the  dispute  to  them." 

This  agreement,  it  will  be  seen,  did  not  go  any  further 
than  to  recite  the  faith  of  each  party  in  the  principle  of 
conciliation  and  arbitration,  and  provide  the  necessary 
machinery  through  which  to  give  it  practical  effect.  No 
attempt  was  made  to  effect  an  understanding  upon  mat- 
ters of  technical  detail.  That  was  considered  a  wise 
policy,  for,  unlike  the  stove  manufacturers'  association, 
which  represented  only  those  who  were  engaged  in  the 
same  industry,  the  National  Founders'  Association  prac- 
tically admitted  to  membership  any  foundryman  who 
was  not  a  member  of  the  other  association.  Thus  it  had 
a  composite  membership,  representing  foundries  whose 
methods  and  necessities  were  not  identical,  and  it  would 
be  extremely  difficult,  under  these  circumstances,  to 
formulate  agreements  of  a  general  character,  capable  of 
meeting  all  exigencies  which  might  arise  in  the  shops  of 
a  membership  of  such  a  varied  character.  For  a  time, 
the  two  associations  confined  their  efforts  to  a  considera- 
tion of  wage  disputes,  and  were  fairly  successful,  although 
one  serious  weakness  was  early  detected,  in  the  disposi- 
tion of  a  number  of  the  members  of  the  National  Found- 
ers' Association  to  refuse  recognition  to  the  trade-union  of 
their  moulders.  That  recognition,  as  I  have  previously 
shown,  is,  next  to  the  fact  of  an  organization  of  the  two 


1 62  INDUSTRIAL   CONCILIATION. 

interests,  one  of  the  chief  requisites  to  the  success  of  the 
principles  we  had  subscribed  to.  Later  on,  attempts  were 
made  by  representatives  of  the  National  Founders'  Asso- 
ciation and  the  Iron  Moulders'  Union,  in  conference,  to 
come  to  an  understanding  upon  questions  vitally  affecting 
the  interests  of  both  parties,  in  matters  of  shop  practice 
and  conditions  of  labor,  and,  in  the  opinion  of  the  union 
representatives,  vitally  affecting  the  integrity  of  their 
organization,  but  were  unsuccessful  and  led  to  the  most 
strained  relations  between  the  two  associations,  which 
culminated,  later,  in  an  open  rupture  in  an  important 
section  of  the  joint  jurisdiction.  It  is  true  the  New 
York  Agreement  is  still  operative  in  other  sections  of  the 
jurisdiction,  but  it  can  well  be  understood  that,  with 
each  association  bending  its  every  effort  to  defeat  the 
other  in  the  city  of  Cleveland,  O.,  the  principles  of  arbi- 
tration, to  which  each  has  subscribed,  cannot  be  applied 
as  effectively  as  they  could  if  a  more  happy  state  of 
affairs  existed. 

It  would  not  advance  the  purposes  of  this  conference 
to  go  into  the  details  of  these  points  of  serious  difference 
between  the  two  associations,  but,  in  order  to  demon- 
strate what  I  consider  another  essential  factor  to  the 
success  of  voluntary  arbitration,  I  will  simply  state  that 
one  of  the  provisions  of  the  resolutions  to  which  the 
representatives  of  the  Iron  Moulders'  Union  were  asked 
to  subscribe  was  such  as  would,  in  its  operation, 
seriously  affect  its  prestige,  and  its  ability  to  enforce 
discipline  among  its  members  and  preserve  its  integrity. 
At  least,  that  was,  and  is,  the  opinion  of  the  thinking 
element  of  that  union,  and,  as  can  well  be  understood, 
was  destructive  of  confidence  in  the  purposes  of  the  em- 
ployers' association.  Confidence  in  the  honesty  of  pur- 


INDUSTRIAL   CONCILIATION.  163 

pose  of  each  party  is,  without  doubt,  an  essential  factor 
to  the  success  of  arbitration  of  trade  disputes.  Destroy 
it — or  even  arouse  a  suspicion — and  the  effectiveness  of 
any  policy  of  arbitration  is  seriously  endangered. 

Here,  then,  we  have  two  examples  of  attempts  at 
voluntary  arbitration  of  trade  disputes  in  the  foundry 
industry — one,  successful;  the  other,  partially  unsuc- 
cessful. A  comparison  of  the  policies  pursued  in  each 
case  will  assist  the  student  of  the  industrial  problem  to 
conceive  the  dangers  which  threaten  the  success  of  all 
policies  involving  arbitration,  and  will  show  by  practical 
demonstration,  more  clearly  than  I  can  do  in  words,  that, 
unless  the  last  remnant  of  that  antagonism  which  existed 
between  the  employer  and  the  employee  in  the  earlier 
days  of  our  industrial  development  be  removed  and  em- 
ployers and  employers'  associations  give  organizations 
of  labor  (which,  alone,  can  assist  them  in  the  successful 
application  of  the  principles  of  voluntary  arbitration  in 
industrial  disputes)  the  fullest  recognition  and  encour- 
agement, we  can  never  hope  to  see  the  fullest  success  of 
its  beneficent  principles.  It  may  be  thought  that  these 
sentiments  are  the  sentiments  of  a  trade-unionist.  They 
are — and,  as  such,  are  the  sentiments  of  a  class  of  men 
who  have  given  the  subject  a  longer  and  more  inter- 
ested consideration  than  any  other  class  of  the  com- 
munity. They  are  not  entirely  selfish  in  their  character, 
but  are  the  deductions  of  long  experience  and  earnest 
thought  in  the  labor  movement. 

Before  proceeding  to  the  consideration  of  compulsory 
arbitration,  permit  me  to  point  out  that,  under  a  system 
of  conciliation  or  voluntary  arbitration  such  as  I  have 
outlined,  it  is  made  mandatory  that  the  parties  immedi- 
ately interested  in  any  dispute  make  an  earnest  effort  to 


164  INDUSTRIAL   CONCILIATION. 

settle,  themselves,  before  referring  it  to  outsiders.  It  is 
true,  the  mere  existence  of  an  agreement  which  provides 
for  the  arbitration  of  disputes  in  any  trade  has  a  tend- 
ency to  lessen  the  seriousness  of  the  effort  made  by  the 
original  disputants  to  settle,  because  they  know  that 
failure  to  agree  does  not  immediately  involve  them  in  a 
strike.  This  is  a  regrettable  feature,  but  is,  after  all, 
only  primary  in  its  character,  and  when  it  is  found,  after 
a  few  experiences,  that  as  good  terms  can  be  secured  by 
their  own  efforts  as  can  be  secured,  as  a  rule,  by  arbi- 
tration, only  the  more  serious  disputes  will  find  their  way 
to  the  arbitrators,  who,  under  this  system,  are  always 
practical  men,  thoroughly  conversant  with  the  subjects 
which  are  likely  to  be  brought  to  their  consideration. 

It  might  not  be  amiss,  at  this  stage,  to  say  that  in  the 
event  of  an  industry  coming  under  the  control  of  one 
immense  corporation,  and  each  branch  or  plant  thereof 
being  simply  the  part  of  one  great  whole,  it  would  be  an 
almost  impossible  proposition  to  operate  successfully 
under  such  an  arrangement  as  that  already  quoted.  It 
would  no  longer  be  possible  to  secure  a  committee  of 
disinterested  employers,  thoroughly  conversant  with  the 
industry  and  identified  with  it,  to  act  on  the  board  of 
conciliation  or  arbitration,  and  this  is  one  of  the  strong 
features  of  the  arrangement  under  discussion.  We  can- 
not arbitrate  in  this  way  with  a  trust  controlling  the 
entire  industry,  although  we  might  with  a  number  of 
smaller  combinations  controlling  the  industry  in  differ- 
ent sections  of  the  country.  In  such  an  emergency,  if 
the  principles  of  arbitration  are  to  govern,  I  incline  to 
the  belief  that  the  State  or  national  government  would 
have  to  provide  the  necessary  machinery. 

Having  dwelt  at  some  length,  already,  upon  practical 


INDUSTRIAL   CONCILIATION.  165 

examples  of  the  operation  of  a  system  of  voluntary  arbi- 
tration in  the  iron-moulding  industry,  I  will  be  brief  in 
my  remarks  upon  compulsory  arbitration.  It  will  have 
been  gathered  from  my  utterances  that  I  am  a  strong 
adherent  of  the  voluntary  system.  Organized  labor  never 
assumes  the  position  "  there  is  nothing  to  arbitrate,"  and 
it  requires  no  compulsory  law  to  induce  it  to  submit  its 
case  to  a  tribunal  competent  to  adjudicate  upon  it,  when 
its  plea  involves  one  of  wages  or  conditions. 

There  is  something  about  the  idea  of  compulsion  that 
is  repugnant  to  American  conceptions  of  liberty  of 
action,  and  it  is  not  difficult  to  conceive  a  case  in 
which  working  men  would  be  compelled  to  work  under 
conditions,  or  for  wages,  that  were  obnoxious  to  them. 
I  recognize,  of  course,  that,  were  it  possible  always  to 
guarantee  a  tribunal  to  adjudicate  upon  a  dispute  which 
could  and  would  do  full  justice  to  all  interests,  compul- 
sion both  in  arbitrating  and  in  enforcing  the  award  could 
be  justified.  We  know,  however,  that  among  men  as  at 
present  constituted,  such  a  guaranty  is  impossible.  We 
know,  also,  that  there  is  not  a  perfect  community  of 
understanding  among  the  classes,  upon  what  is  called 
the  labor  problem.  That  being  the  case,  it  would  be  an 
extremely  difficult  matter  to  constitute  a  court  of  arbi- 
tration which  would  have  the  entire  confidence  of  the 
interests  involved,  and,  hence,  to  secure  a  court  whose 
finding  would  give  satisfaction.  I  am  strongly  of  the 
conviction  that,  in  a  country  like  the  United  States, 
where  there  are  so  many  diverse  interests,  so  many  di- 
verse views,  and  so  many  instances  in  which  the  interests 
of  capital  are  placed  before  those  of  labor,  compulsory 
arbitration  is  thoroughly  impractical,  and  its  principle  is 
thoroughly  obnoxious  to  the  American  citizen.  The 


1 66  INDUSTRIAL   CONCILIATION. 

citizen  cannot  afford  to  lend  his  assent  to  any  govern- 
mental institution  which,  in  the  capacity  of  a  court 
having  power  to  enforce  its  award,  could  compel  him  to 
submit  to  conditions  of  labor  which  are  obnoxious  to 
him,  under  penalty  of  fine  or  loss  of  liberty.  Especially 
is  it  objectionable,  when,  in  a  system  of  voluntary  arbi- 
tration, such  as  has  been  outlined  in  this  paper,  there  is 
as  yet  ample  provision  both  for  the  preservation  of 
industrial  peace  and  the  dispensation  of  justice  in 
industrial  disputes. 

I  would  not  be  consistent,  after  having  assumed  this 
attitude  to  compulsory  arbitration  in  general  industrial 
enterprises,  were  I  to  endorse  its  application  in  disputes 
of  those  engaged  in  enterprises  of  a  quasi-public  char- 
acter, such  as  steam  or  street  railways.  I  am  willing  to 
admit  that,  inasmuch  as  the  public  are  more  deeply  in- 
terested in  this  instance,  and  are  often  grievously  incon- 
venienced by  reason  of  disputes  arising  between  the 
employees  and  the  management  engaged  in  the  opera- 
tion of  enterprises  of  this  character,  there  is  more 
justification  for  such  governmental  interference  as  would 
be  involved  in  this  limited  form  of  compulsory  arbitra- 
tion, but  I  feel  that,  even  under  these  circumstances,  I 
would  not  be  justified  in  prescribing  for  the  employees 
of  a  street  railroad,  or  other  public  carrier,  a  process  to 
which  I  objected  myself.  It  will  be  seen  that  in  all  my 
references  to  compulsory  arbitration,  I  assume  that  the 
board  or  court  of  arbitration  would  be  vested  with  the 
power  necessary  to  enforce  its  award;  that  is,  to  punish 
its  violation,  by  fine  or  imprisonment.  And  I  can  con- 
ceive of  no  such  board  or  court  proving  effective  unless 
it  be  vested  with  such  powers.  Then  again,  if  the  New 
Zealand  law  be  followed,  the  referee  or  odd  man  in  the 


INDUSTRIAL   CONCILIATION.  167 

board  would  likely  be  a  member  of  the  judiciary,  and, 
as  he  could  not  always  be  expected  to  possess  an  inti- 
mate knowledge  of  the  varied  interests  he  would  be 
called  upon  to  decide,  these  interests  would  be  in  some 
danger  of  suffering  injustice,  such  as  would  not  be  the 
case  were  the  voluntary  system  in  operation. 

Of  State  boards  of  arbitration,  I  will  have  little  to 
say.  We  all  know  that,  as  at  present  constituted,  they 
have  proven  far  from  satisfactory  as  a  means  of  dealing 
effectively  with  labor  disputes.  Almost  invariably,  they 
savor  more  or  less,  in  their  complexion,  of  partisan 
politics,  and  do  not  possess  the  complete  confidence  of 
either  one  or  the  other  factor  in  industry.  As  a  result 
they  are  very  rarely  appealed  to  by  the  two  parties  in- 
terested in  a  dispute.  They  have  no  power  either  to 
compel  reference  of  disputes  to  them  or  to  enforce  their 
award  when  reference  has  been  made,  and  can  only 
render  service  in  those  exceptional  instances,  in  which 
the  parties  mutually  agree  to  refer  their  differences  to 
them  for  determination  and  express  their  willingness  to 
accept  the  finding. 

With  these  brief  references  to  compulsory  arbitration 
and  State  boards  I  will  close,  but  not  before  I  reiterate 
my  firm  and  unfaltering  conviction  that  the  peace  of  the 
industrial  community  and  the  broadening  of  our  civiliza- 
tion are  dependent  upon  the  completest  organization  of 
the  men  and  women  engaged  in  the  industries  of  our 
country,  the  organization  of  the  employing  interests  on 
lines  designed  to  mete  out  justice  and  not  to  disrupt  or 
antagonize  the  organizations  of  labor,  and  the  assent  of 
both  to  the  fullest  and  freest  application  of  the  prin- 
ciples of  conciliation  and  arbitration  in  industrial  dis- 
putes, 


CONFERENCES  OF  THE  IRON  MOULDERS' 
UNION  AND  THE  NATIONAL  FOUNDERS' 
ASSOCIATION. 

BY    H.    W.    HOYT,    EX-PRESIDENT    OF    THE    NATIONAL 
FOUNDERS'  ASSOCIATION. 

"TF  voluntary  arbitration  will  tend  to  solve  industrial 

1  problems  along  the  lines  of  least  resistance,  how 
can  it  best  be  attained  in  this  country  ?  "  is  one  of  the 
questions  suggested  in  the  call  for  this  conference. 

The  industrial  problems,  so-called,  must  be  adjusted 
along  the  line  of  least  resistance,  and  the  line  of  least 
resistance,  in  my  opinion,  is  voluntary  arbitration.  The 
highest  conception  of  arbitration  is  that  of  an  unbiassed 
conference  board— a  judicial  body  composed  of  arbitra- 
tors outside  the  sphere  of  influence  exerted  by  the  con- 
tending parties. 

Another  idea,  approaching  more  nearly  the  practical, 
is  that  of  a  board  consisting  of  equal  numbers  from  the 
two  bodies,  with  an  umpire  chosen  by  both. 

Each  of  these  conceptions  of  an  arbitration  board 
has  failed  to  satisfy  the  parties  in  interest  or  to  solve 
and  settle  industrial  disputes.  The  best  thinkers  who 
are  charged  with  the  trying  duties  of  practical  arbi- 
tration have  about  decided  that  unless  satisfactory 
settlements  can  be  reached  by  an  equal  number  of 
representatives  of  employer  and  employee,  without  an 

168 


INDUSTRIAL   CONCILIATION.  169 

umpire,  the  conference  would  better  fail.  The  future 
economist  may  be  wise  enough  to  present  to  a  waiting 
world  some  plan  of  arbitrary  arbitration  acceptable  to 
the  wage-earner  and  wage-payer,  but  we  fear  that  genius 
is  not  yet  born.  While  waiting  for  his  advent,  arbitra- 
tion will  go  on.  Every  day  we  realize  that  public  senti- 
ment is  crystallizing  around  that  thought.  The  dawning 
century  will  inherit  from  the  past  no  more  significant 
token  of  the  evolution  of  peace  and  good  will  than  this 
acknowledgment  of  the  efficacy  of  conciliation. 

Arbitration  invariably  means  compromise,  and  unless 
the  contending  parties  are  prepared  to  accept  this  abso- 
lute fact,  the  work  must  fail.  Everything  depends 
upon  the  personnel  of  the  board.  How  important  that 
the  choice  of  arbitrators  should  fall  upon  the  clearest 
and  deepest  thinkers,  ^hose  vision  is  not  obscured  by 
their  prejudices. 

Questions  of  difference  between  buyer  and  seller  are 
as  old  as  mankind  and  yet  the  dominion  of  commerce 
illustrates  how  easily  adjustments  are  made  in  that  realm. 
The  purely  commercial  aspect  of  barter  and  sale  is  com- 
plicated with  the  human  element  in  questions  relating 
to  wages,  and  he  who  would  settle  the  wage  problem 
without  taking  humanitarianism  into  the  account  will 
not  serve  his  fellow-men  acceptably.  The  old  law  of 
supply  and  demand,  strictly  interpreted,  does  not  avail 
to  adjust  all  disputes  that  arise  in  the  economic  world. 
The  competent  arbitrator  must  acknowledge  this.  The 
employer  who  admits  no  other  rule  of  action  is  unwise. 

There  has  been  an  infinite  amount  of  trouble  in  con- 
ferences for  conciliation  and  arbitration  caused  by  insist- 
ence upon  rules  of  conduct  evolved  in  the  lodge  room 
and  forming  the  written  or  unwritten  laws  of  unionism. 


I/O  INDUSTRIAL   CONCILIATION. 

To  refer  to  these  in  detail  would  be  to  provoke  unwar- 
ranted contention  at  this  time.  Equally  provocative  of 
trouble  has  been  the  tendency  among  some  employers 
to  ignore  the  wage-earners  in  the  collective  capacity. 
Sometime  these  two  great  forces  will  learn  that  the  intel- 
ligent modification  of  their  respective  positions  will 
extinguish  the  causes  of  what  has  too  frequently  been 
called  an  irrepressible  conflict.  It  may  require  a  great 
calamity  in  the  industrial  world  of  America  to  teach  us 
anew  some  of  the  truths  uttered  by  our  forefathers  and 
imperishably  preserved  in  the  Declaration  of  Indepen- 
dence. 

The  hope  of  averting  destructive  war  lies  in  the  spirit 
that  prompted  this  conference  and  in  its  educative 
forces. 

I  beg  permission  to  speak  briefly  of  the  practical  side 
of  arbitration  and  to  point  out  what  has  been  done  in 
one  of  the  greatest  fields  of  industrial  activity,  in  the 
hope  that  the  successes  and  failures  recorded  may  in- 
spire a  lively  faith  in  the  achievement  of  those  results 
which  every  sane  man  and  woman  will  welcome. 

The  National  Founders'  Association  is  one  of  the 
practical  results  of  the  evolution  of  modern  social  eco- 
nomics. The  fundamental  article  of  its  constitution  is 
the  very  embodiment  of  voluntary  arbitration,  and  reads 
as  follows: 

"The  objects  of  this  Association  are:  ist. — The  adoption  of  a 
uniform  basis  for  just  and  equitable  dealings  between  the  members 
and  their  employees,  whereby  the  interests  of  both  will  be  properly 
protected.  2d. — The  investigation  and  adjustment,  by  the  proper 
officers  of  the  Association,  of  any  question  arising  between  members 
and  their  employees." 

This  association   was   forrnecl   less  than   three  years 


INDUSTRIAL   CONCILIATION.  I'Jl 

ago.  It  now  numbers  about  four  hundred  members 
throughout  the  great  manufacturing  centres  of  the  East, 
Middle  West,  and  West.  It  employs  an  army  exceeding 
thirty  thousand  men. 

One  of  its  earliest  acts  was  a  joint  conference  with 
the  representatives  of  the  Iron  Moulders'  Union  of  North 
America  for  the  purpose  of  considering  an  agreement 
that  should  form  the  working  basis  of  a  treaty  of  peace. 
This  joint  conference  agreed  upon  a  plan  of  arbitration 
which  was  subsequently  adopted  by  the  rank  and  file  of 
both  associations.  It  was  an  exceedingly  simple  and 
effective  agreement,  by  the  terms  of  which  each  body 
solemnly  agreed  that  there  should  be  neither  strikes  nor 
lockouts  in  the  foundry  industry  until  arbitration  had 
failed  to  adjust  the  differences.  The  wise  provisions  of 
this  agreement  have  been  invoked  scores  of  times,  with 
such  flattering  results  that  neither  party  could  be  per- 
suaded to  consent  to  its  abrogation. 

The  National  Founders'  Association  is  the  largest 
organized  body  of  employers  in  the  United  States  com- 
mitted to  the  utilitarian  object  set  forth  in  its  constitu- 
tion. The  Iron  Moulders'  Union,  on  the  other  hand,  is 
one  of  the  largest,  best  organized,  and  most  intelligently 
governed  labor  unions  in  this  republic.  It  is  significant, 
therefore,  to  remember  that  during  the  eventful  and 
intensely  active  industrial  year  of  1899  there  was  not  a 
single  disastrous  strike  or  lockout  in  the  foundry  indus- 
try notwithstanding  the  conditions  were  such  as  to 
naturally  provoke  wage  conflicts. 

These  two  great  associations  of  employers  and  em- 
ployees have  not  been  as  successful  in  averting  all  con- 
tention in  the  year  1900,  but  the  very  failures  have 
emphasized  the  necessity  and  the  wisdom  of  a  still  closer 


172 


INDUSTRIAL   CONCILIATION. 


adherepce  to  the  principles  of  arbitration  and  concilia- 
tion, and  a  more  profound  study  and  examination  of 
economic  conditions. 

Permanent  results  have  already  been  definitely 
reached.  It  has  been  found  possible  for  the  repre- 
sentatives of  the  two  organizations  mentioned  to  meet 
and  discuss  the  principles  for  which  each  is  contending, 
without  the  slightest  danger  of  personal  animosity. 
Various  conferences  have  been  carried  on,  with  a  strong 
desire  on  both  sides  to  reach  a  common  ground  by  the 
exercise  of  mutual  forbearance  and  concession.  Failures 
to  arrive  at  a  harmonious  decision,  even  in  the  face  of 
impending  industrial  conflicts,  have  not  destroyed  faith 
in  the  success  of  the  principle  of  arbitration.  Each 
party  has  become  more  tolerant  of  the  other.  Friendly 
conferences,  face  to  face  with  each  other,  have  destroyed 
preconceived  notions  of  each  other's  characteristics, 
broadened  and  deepened  the  spirit  of  toleration,  and 
gradually  paved  the  way  for  eventual  peace  in  that  great 
industry. 

An  attempt  has  been  made  to  nationalize  the  scheme 
of  arbitration, — in  other  words,  to  take  away  from  each 
individual  case  of  difficulty  its  strictly  local  character, 
and  place  the  adjustment  of  it  in  regularly  appointed 
committees  chosen  by  both  associations,  which  commit- 
tees, by  reason  of  their  experience  and  broader  horizon, 
are  able  to  eliminate  the  local  feature  and  arrive  at  re- 
sults in  harmony  with  existing  and  accepted  conditions 
elsewhere  throughout  the  country. 

This  course  of  action  has  gone  far  towards  relieving 
the  manufacturer  from  those  petty  annoyances  which  he 
has  always  associated  with  unionism,  and  at  the  same 
time  has  elevated  and  dignified  the  mission  of  the  local 


INDUSTRIAL   CONCILIATION.  173 

and  district  officers  of  the  Iron  Moulders'  Union  of 
North  America. 

The  consequence  has  been  that  a  more  experienced, 
intelligent,  and  tolerant  body  of  men  have  been  called 
into  action,  and  that  the  rank  and  file  of  union  men  are 
rapidly  becoming  educated  to  the  new  method  of  dealing 
with  their  affairs  individually  and  collectively,  while  the 
manufacturers  have  been  educated  to  a  more  liberal  and 
just  consideration  of  their  employees'  interests. 

The  preamble  of  the  constitution  of  the  Iron  Mould- 
ers' Union  of  North  America  begins  with  this  declara- 
tion: 

"  Believing  that  under  the  present  social  system  there  is  a  general 
tendency  to  deny  the  producer  the  full  reward  of  his  industry  and 
skill  .  .  ." 

Upon  this  declaration  of  want  of  faith  in  human  justice 
is  builded  practically  all  there  is  of  unionism.  The 
searcher  after  truth  cannot  deny  that  there  has  been 
much  justification  for  this  assumption.  The  National 
Founders'  Association  has  expended  a  great  deal  of 
energy  in  endeavoring  to  bring  about  a  set  of  conditions 
which  would  destroy  the  force  of  such  a  charge  among 
its  members. 

As  an  evidence  of  the  spirit  which  actuates  the  de- 
liberations of  the  association,  I  desire  briefly  to  quote 
from  newspaper  reports  of  the  two  last  conventions  of 
the  National  Founders'  Association.  Speaking  of  the 
Detroit  convention  held  in  February,  1900,  the  report 
says: 

"  If  those  who  are  pessimistic  as  to  the  outcome  of  the  issues  be- 
tween organized  labor  and  employing  capital  could  have  heard  the 
discussions  at  the  Detroit  meeting  and  caught  the  spirit  that 


174  INDUSTRIAL    CONCILIATION. 

dominated  the  convention,  they  would  have  learned  that  the  declar- 
ations of  the  constitution  are  not  glittering  platitudes.  It  was 
gratifying  to  find  that  intelligent,  well  equipped  men  in  the  ranks 
are  strongly  seconding  the  efforts  of  their  leaders  to  make  just  and 
equitable  dealing  the  rule  between  founders  and  moulders." 

Another  unbiassed  report  of  the  same  convention  said: 

"  No  one  could  be  present  at  the  deliberations  and  hear  the  dis- 
cussions of  the  National  Founders'  Association  without  being  forcibly 
impressed  by  the  high  principle  actuating  the  members.  Primarily 
driven  by  the  aggressions  of  labor  and  the  arbitrary  attitude  of  labor 
leaders  into  forming  an  association  for  defensive  purposes,  that 
phase  of  the  present  situation  was  seldom  brought  out. 

"  Instead  of  hostility  to  the  working  man  and  his  efforts  to  secure 
additional  advantages,  a  humane  interest  was  shown  in  his  welfare 
and  full  recognition  was  accorded  to  his  rights." 

In  discussing  the  proceedings  of  the  last  convention, 
held  in  November,  this  year,  a  faithful  newspaper  report 
contains  the  following: 

"  Division  between  capital  and  labor  was  deplored;  the  com- 
munity of  interest  subsisting  between  employer  and  employee  was 
emphasized.  .  Nowhere  in  the  discussions  was  any  countenance 
given  to  the  doctrine  of  right  by  might,  or  any  suggestion  of  peace 
on  a  basis  that  left  out  justice.  If  the  sowers  of  discord  between 
capital  and  labor,  and  those  labor  leaders  who  preach  constantly  the 
doctrine  that  the  employee's  interest  is  always  in  finding  out  what  is 
to  the  interest  of  his  employer  and  opposing  it  with  all  his  might, 
could  have  heard  the  sentiments  expressed  by  the  leaders  in  debate, 
they  might  have  imbibed  a  new  idea  concerning  the  attitude  of  the 
average  manufacturer  toward  his  employees." 

The  association  of  which  I  have  spoken  is  a  type  of  its 
class.  It  is  most  gratifying  to  note  the  success  achieved 
by  the  kindred  organizations.  The  general  public  is 
scarcely  prepared  to  accept  the  simplest  recital  of  the 


INDUSTRIAL    CONCILIATION.  175 

history  that  has  been  made  in  promoting  the  principles 
of  arbitration. 

What  of  the  future  ? 

As  long  as  the  wage-earner  believes,  or  is  taught  to 
assume  that  society  is  in  league  to  rob  him,  as  an  in- 
dividual, of  some  of  the  purchasing  power  of  his  services, 
so  long  must  society  reckon  with  him  in  his  collective 
capacity.  The  employer  who  elects  to  ignore  this  fact 
is  often  as  much  of  a  menace  to  the  industrial  peace  as 
is  that  agitator  who  plays  upon  the  prejudices  and  in- 
flames the  passions  of  the  men  he  falsely  serves.  But 
the  conditions  are  improving  on  both  sides.  The  pro- 
gressive manufacturer  has  learned  that  a  union  is  not  an 
altogether  reprehensible  evil  in  social  economics,  and 
readily  admits  that  when  organized  wage-earners  are 
dominated  by  strong  conservative  men  they  will  meet 
the  employer  half-way  in  arbitration. 

Unions  must  remember  that  there  never  was  an  at- 
tempt made  to  unite  manufacturing  employers  in  the 
common  cause  of  treating  collectively  with  the  relations 
of  labor  until  the  unions  themselves  had  asserted  their 
power.  Both  the  employer  and  the  employee  must  be 
honest  enough  to  concede  that  their  interests  are  mutual, 
and  that  the  deep  problems  of  economics  cannot  be 
solved  in  a  decade.  It  is  a  slow  evolution,  that  cannot 
be  hastened  by  violence  or  intolerance.  All  the  theories 
of  all  the  wise  scholastics  on  earth  are  of  little  avail. 
There  is  only  one  certain  rule  of  action.  It  was  long 
ago  called  the  Golden  Rule. 


CONCILIATION,    NOT  ARBITRATION. 

BY  CHAUNCEY  H.  CASTLE,   PRESIDENT  OF   THE    STOVE 
FOUNDERS'  NATIONAL  DEFENCE  ASSOCIATION. 

AS  a  representative  of  the  Stove  Founders'  National 
Defence  Association,   I  have  been  requested  to 
state  my  observations  of,  and  the  experiences  of  our  as- 
sociation with  what  is  known  as  "  Industrial  Arbitration." 

Regarding  the  importance  of  this  subject,  at  this  time, 
nothing  need  be  said  by  me.  A  very  large  portion  of 
the  cost  of  a  stove,  range,  or  furnace  is  represented  by 
the  expenditure  for  labor  of  various  classes  in  the  con- 
struction of  it,  and  the  amount  paid  for  moulding  consti- 
tutes a  material  percentage  of  the  entire  labor  cost. 

The  Iron  Moulders'  Union  is  one  of  the  oldest,  strong- 
est, and  most  aggressive  labor  organizations  in  this 
country. 

Almost  immediately  after  entering  the  business  of 
stove  manufacturing,  during  the  year  1865,  in  a  man- 
aging capacity,  of  a  department  connected  with  labor, 
I  became  involved  in  a  contest  followed  by  a  strike, 
inaugurated  by  the  Moulders'  Union. 

At  frequent  intervals,  during  a  long  series  of  years 
following,  there  was  a  recurrence  of  moulders'  strikes,  or 
there  was  a  lockout.  In  some  cases  the  strikes  were  for 
an  advance,  while  at  other  times  they  were  against  re- 
duction in  the  prices  paid  for  moulding.  In  other 

176 


INDUSTRIAL   CONCILIATION. 

instances  there  were  other  issues,  but  at  any  time  a 
strike  was  liable  to  be  made  upon  slight  provocation, 
and,  as  it  seemed  to  me,  without  deliberate  considera- 
tion. 

In  almost  every  case  in  which  I  was  in  any  manner 
responsible,  or  that  came  under  my  observation,  the 
issue  was  ultimately  adjusted,  after  a  more  or  less  pro- 
tracted period  of  idleness  and  of  bitter  contest,  by  means 
of  conference  between  representatives  of  the  parties  in 
interest;  and  I  was  never  able  to  comprehend  why  such 
conference  might  not  better  have  occurred  in  advance  of 
the  issue  being  made,  rather  than  after,  thereby  avoiding, 
if  possible,  unnecessary  loss  of  money  through  waste  of 
time.  However,  there  seemed  to  be  no  disposition  to 
try  to  discover  a  method. 

From  time  to  time  there  were  suggestions  of  resorting 
to  arbitration  in  settling  or  avoiding  strikes.  Such  came 
from  employees  and  were  not  favorably  entertained  by 
employers. 

These  labor  disturbances,  through  strikes  by  moulders, 
grew  from  bad  to  worse,  in  our  line  of  business,  and 
from  1882  to  1886  were  extremely  grievous. 

Various  groups  of  stove  manufacturers  met  and  con- 
sidered methods  of  meeting  organization  with  organiza- 
tion. Some  men  of  large  experience  who  entertained 
extreme  ideas,  together  with  others  of  little  experience, 
were  disposed  to  make  common  cause  against  labor 
organizations  in  all  cases  wherein  an  issue  should  be 
made  by  such  against  any  member  of  a  contemplated 
organization.  Others,  who  also  possessed  large  experi- 
ence, insisted  that  a  more  conservative  policy  should  be 
pursued,  that  thorough  investigation  of  any  issues  should 
be  made,  and  that  a  member  should  not  be  sustained 


i;8  INDUSTRIAL    CONCILIATION. 

until  it  was  proven,  after  affording  all  parties  an  oppor- 
tunity to  be  heard,  that  the  demands  were  unjust  and 
that  just  terms  could  not  be  had.  This  idea  finally  pre- 
vailed. 

It  was  also  the  conclusion  that  it  would  be  to  our 
advantage  to  profit  by  the  many  years'  experience  of  the 
Moulders'  Union  by  forming  our  organization,  to  an 
extent,  along  the  lines  at  that  time  in  use  by  that  organi- 
zation. 

Accordingly  the  Stove  Founders'  National  Defence 
Association  was  formed  in  1886,  embracing  a  large  pro- 
portion of  those  who  manufacture  stoves  most  exten- 
sively. An  executive  committee  was  selected,  and  the 
man  of  largest  experience  upon  both  sides  of  labor 
questions  connected  with  the  business  of  manufacturing 
stoves,  Mr.  Henry  Cribben,  of  Chicago,  was  elected 
President.  We  proceeded  to  formulate  our  articles  and 
by-laws,  having  due  appreciation  of  the  skill  and  ability 
of  the  leaders  of  the  opposition. 

A  short  time  after  our  organization  was  formed  we 
were  obliged  to  contend  with  a  serious  condition.  A 
demand  was  made  upon  one  of  our  members  by  the 
Moulders'  Union  of  St.  Louis  for  a  large  increase  in 
the  rate  of  wages.  The  demand  was  promptly  followed 
by  a  strike. 

Our  committee  proceeded  to  St.  Louis  to  investigate. 
After  thoroughly  informing  ourselves  we  offered  a 
partial  concession  of  the  increase  demanded,  to  go  into 
immediate  effect,  together  with  an  additional  increase 
at  a  stated  time,  a  few  months  later  on. 

This  offer  was  rejected,  and  we  entered  upon  a  contest 
which  resulted  in  the  complete  triumph  of  our  organiza- 
tion, although  at  large  cost  to  us,  and  to  our  member 


INDUSTRIAL    CONCILIATION.  179 

who  was  involved,  and  at  incomputable  cost  to  the  Iron 
Moulders'  Union  of  North  America. 

We  engaged  in  other  contests  with  the  Iron  Moulders' 
Union  during  the  four  or  five  years  ensuing,  each  of 
which  resulted  about  as  did  the  first. 

The  Stove  Founders'  National  Defence  Association 
had  at  all  times  manifested  a  willingness  and  desire  to 
confer  with  employees  or  with  organizations  of  em- 
ployees, upon  any  question  of  mutual  interest,  with  a 
view  to  saving  trouble  and  expense  through  satisfactory 
adjustment. 

The  general  officers  of  the  Moulders'  Union  came  to 
appreciate  the  possibilities  of  advantage  in  such  a  course, 
and  early  in  1891  an  arrangement  was  made  for  a  con- 
ference between  five  representatives  of  their  organization 
and  an  equal  number  of  ours. 

Such  conference  was  held  in  Chicago,  late  in  March, 
1891,  and  during  a  session  of  three  days  a  plan  for  the 
consideration  and  adjustment  of  grievances,  which  was 
called  arbitration,  but  which  may  more  properly  be 
called  conciliation,  was  unanimously  agreed  upon  by  the 
ten  representatives,  and  was  approved  of  and  ratified  by 
the  respective  organizations. 

The  representatives  of  the  moulders  urged  the  strict 
arbitration  plan,  and  as  the  word  has  a  meaning  of  jus- 
tice and  fairness,  our  representatives,  in  general,  were 
disposed  to  favorably  entertain  it.  However,  some  of 
our  representatives  contended  strenuously  that  our  mem- 
bers could  not  properly,  and  therefore  would  not,  enter 
into  an  agreement  that  would  obligate  them  in  advance 
to  submit  important  questions  affecting  their  business 
to  the  decision  of  an  odd  and  disinterested  man,  who 
had  no  knowledge  of  their  business  and  its  requirements, 


180  INDUSTRIAL   CONCILIATION. 

and  who  might  be  biassed.  The  arguments  upon  this 
question  of  arbitration  were  earnest  arid  extended.  It 
was  contended: 

First.  That  the  odd  man,  who  was  disinterested,  and 
who  would  probably  have  no  knowledge  of  the  business, 
would  be  alone  responsible,  for  the  reason  that  the 
representatives  of  neither  party  would  be  liable  to  con- 
cede, even  if  convinced,  for  those  he  represented  would 
expect  him  to  win  through  the  odd  man,  if  possible. 
The  question  was  asked  of  one  who  was  most  strenuous 
for  arbitration:  "Would  you,  if  a  member  of  an  arbitra- 
tion committee,  representing  your  side,  concede  anything 
of  importance,  even  if  you  became  convinced  it  was  right 
to  do  so?"  And  his  reply  was,  "No;  I  should  feel 
obliged  to  win,  if  possible,  through  the  odd  man." 

Second.  That  it  would  be  extremely  difficult  to  secure 
the  services,  in  each  case,  of  such  a  man  as  would  be 
needed,  and  who  would  be  acceptable  to  both  parties, 
because  few  such  men  would  be  willing  to  serve,  even 
when  agreed  upon,  as  the  position  would  not  be  a  desir- 
able one,  to  a  really  good  and  competent  man. 

Third.  Should  an  agreement  to  arbitrate  be  made, 
issues  would  multiply  and  some  of  the  demands  would 
be  extreme,  unjust,  and  even  ridiculous.  Such  issues 
would  be  made,  however,  only  because  there  would  be  a 
chance  to  gain  through  the  odd  man  while  there  could 
not  possibly  be  a  loss. 

Fourth.  The  employer  could  not  expect  to  stand  an 
even  chance  with  the  employee,  aside  from  the  merits  of 
the  question,  in  an  average  of  a  number  of  arbitrations, 
because  of  the  facts,  that  public  sympathy  is  always  with 
the  workmen,  that  they  have  many  votes,  that  they  have 
large  patronage  to  bestow  upon  every  business  and  pro- 


INDUSTRIAL   CONCILIATION.  l8l 

fession,  and  that  they  do  not  hesitate  to  exert  to  the 
utmost  in  such  matters  such  influence  as  accompanies 
these  conditions.  So  that,  at  any  rate,  if  in  doubt,  the 
arbiter,  being  inexperienced  and  without  knowledge  of 
the  business,  would  be  likely  to  incline  to  favor  the 
employee. 

For  these  reasons  it  was  not  reasonable  to  expect  our 
members  to  be  willing  to  accept  such  an  arrangement. 
In  other  words  they  would  not  be  willing  to  submit  an 
important  question,  largely  affecting  their  business  in- 
terests, to  the  casting  up  of  a  chip,  "wet  or  dry,"  with  a 
large  majority  of  the  chances  in  favor  of  its  falling  wet 
side  up,  if  their  representatives  selected  dry.  If  the 
award  was  unjust  to  employees,  they  would  not  work 
under  it,  and  if  such  as  would  operate  to  the  ruin  of  the 
business  of  the  employer,  he  could  not  long  abide  by  it. 

It  was  urged  that  it  were  far  better  to  submit  any  issue 
to  a  committee,  composed  of  an  equal  number  of  the 
representatives  of  the  moulders  and  of  the  manufactur- 
ers, as  a  last  resort,  each  of  whom  had  a  knowledge  of 
and  an  interest  in  the  business,  who  should  strenuously 
strive  to  reach  an  agreement,  understanding  that  in  case 
of  their  failure  to  do  so  an  open  rupture  and  bitter 
contest  must  be  the  result. 

Consideration  was  also  given  to  avoiding,  to  the  extent 
that  might  be  possible,  the  inconvenience  and  expense 
of  calling  upon  such  a  conference  committee. 

It  was  agreed  that  employers  and  employees,  who 
were  directly  affected,  ought,  in  each  case,  locally,  to 
make  special  efforts  themselves  to  settle  any  disagree- 
ment, and  that,  failing  to  do  so,  either  or  both  might 
send  a  statement  of  grievances  to  the  officers  of  their 
general  organizations,  and  that  then  the  presidents 


182  INDUSTRIAL   CONCILIATION. 

should  make  investigation  and  try  to  adjust  the  dispute 
before  the  conference  committee  should  be  called. 

After  a  thorough  discussion,  extending  over  three 
days,  as  previously  stated,  the  following  resolutions  were 
unanimously  adopted  by  the  ten  representatives: 

"i.  Resolved,  that  this  meeting  adopt  the  principle  of  arbitration 
in  the  settlement  of  any  dispute  between  the  members  of  the  I.  M. 
U.  of  N.  A.  and  the  members  of  the  S.  F.  N.  D.  A. 

"  2.  That  a  conference  committee  be  formed,  consisting  of  six 
members,  three  of  whom  shall  be  stove  moulders,  appointed  by  the 
Iron  Moulders'  Union  of  North  America,  and  three  persons  ap- 
pointed by  the  Stove  Founders'  National  Defence  Association,  all 
to  hold  their  offices  from  May  ist  to  April  3Oth  of  each  year. 

"  3.  Whenever  there  is  a  dispute  between  a  member  of  the  S.  F. 
N.  D.  A.  and  the  moulders  in  his  employ  (when  a  majority  of  the 
latter  are  members  of  the  I.  M.  U.)  [this  exception,  or  qualification, 
was  afterwards  eliminated],  and  it  cannot  be  settled  amicably  be- 
tween them,  it  shall  be  referred  to  the  presidents  of  the  two  associa- 
tions before  named,  who  shall  themselves  or  by  delegates  give  it  due 
consideration.  If  they  cannot  decide  it  satisfactorily  to  themselves, 
they  may,  by  mutual  agreement,  summon  the  conference  committee, 
to  whom  the  dispute  shall  be  referred,  and  whose  decision  by  a 
majority  vote  shall  be  final  and  binding  upon  each  party  for  the 
term  of  twelve  months. 

"Pending  adjudication  by  the  presidents  and  conference  com- 
mittee, neither  party  to  the  dispute  shall  discontinue  operations, 
but  shall  proceed  with  business  in  the  ordinary  manner.  In  case  of 
a  vacancy  in  the  committee  of  conference,  it  shall  be  filled  by  the 
association  originally  nominating.  No  vote  shall  be  taken  except 
by  a  full  committee  or  by  an  even  number  of  each  party." 

These  resolutions  were  reported  to,  approved  of,  and 
ratified  by  both  organizations,  thus  becoming  agreements, 
and  superior,  as  to  any  question  between  the  two  organi- 
zations or  members  of  the  same,  to  any  article,  by-law, 
or  rule  of  either,  that  might  be  in  conflict  with  them. 


INDUSTRIAL   CONCILIATION.  183 

You  will  observe  that  while  we,  in  the  first  clause, 
adopt  the  principle  of  arbitration,  we  do  not,  strictly 
speaking,  adopt  the  practice  of  it,  but  instead,  we  prac- 
tise conciliation  through  conference.  Adjustments  so 
reached  are  by  far  the  most  sure  method  of  properly 
protecting  important  interests.  Conferences  constitute 
a  much  better  and  more  economical  method  of  correcting 
unjust  conditions  than  do  strikes  and  lockouts.  What 
manner  of  man  must  he  be  who  prefers  going  into  an 
expensive  lawsuit  to  settle  a  dispute  regarding  a  business 
question,  rather  than  confer  with  the  opposite  party 
upon  the  merits  of  it  ? 

You  will  also  observe  that  we  undertake  to  avoid 
strikes  and  lockouts  by  agreeing  that  pending  adjudica- 
tion by  the  presidents  and  the  conference  committee 
neither  party  to  the  dispute  shall  discontinue  operations, 
but  shall  proceed  with  business  in  the  ordinary  manner. 
You  will  readily  believe  that  there  has  been  some  trouble 
connected  with  carrying  out  this  agreement,  and  this 
notwithstanding  it  is  to  the  immediate  advantage  of  all 
parties.  There  are  many  radicals  among  employers,  as 
well  as  among  employees,  and  such  are  liable  to  con- 
sider that  their  natural  rights  are  being  abridged  if  they 
are  not  at  liberty  to  close  their  works,  or  to  strike,  as 
the  case  may  be,  whenever  they  have,  or  believe  they 
have,  a  serious  grievance.  A  shut-down  or  a  strike  for 
a  day  or  two,  where  an  issue  has  been  made,  has  oc- 
curred upon  some  occasions,  in  violation  of  this  agree- 
ment, ordinarily  through  failure  of  the  parties  to 
understand  their  obligations,  but  work,  in  each  case,  has 
been  resumed  when  the  matter  has  been  brought  to  the 
attention  of  the  party  violating,  or  when  their  officers 
have  remonstrated.  This  clause  is  a  very  important 


1 84  INDUSTRIAL   CONCILIATION. 

one,  aside  from  the  saving  of  time  and  money  accom- 
plished through  it,  as  it  enables  all  parties  to  proceed 
with  adjustments  in  a  cool  and  deliberate  manner  with- 
out excitement  or  anger.  It  is  much  more  easy  to  adjust 
a  difficulty  before  a  rupture  occurs  than  afterward. 

During  nearly  nine  years  of  practical  operations  under 
this  conference  agreement  it  has  not  been  necessary  to 
assemble  the  conference  committee,  provided  for  in 
Clause  3,  in  more  than  one  or  two  instances,  although 
hundreds  of  issues  have  been  made  and  grievances  sent 
in.  Almost  without  exception  they  have  been  satisfac- 
torily adjusted  by  the  presidents  themselves,  or  their  rep- 
resentatives delegated  for  the  purpose,  and  no  strike  by 
moulders  or  lockout  by  the  manufacturer  has  prevailed 
in  any  factory  of  any  member  of  our  organization  for 
more  than  one  or  two  days,  and  even  such  have  been  rare. 

Since  the  adoption  of  the  plan  of  conference  in  1891, 
as  stated,  we  have  held  a  conference  meeting  of  a  some- 
what similar  character  almost  every  year  at  some  time  in 
the  months  of  March  or  April. 

Various  additional  clauses  have  been  adopted  and 
ratified.  Most  of  these  are  not  of  general  interest,  as 
they  pertain  to  foundry  rules  and  practice.  Clauses  5 
and  6,  adopted  in  1892,  however,  relate  to  general  rates 
of  moulders'  wages  and  a  method  of  arriving  at  the  same, 
and  are  as  follows: 

"5.  The  general  rate  of  moulders'  wages  shall  be  established  for 
each  year  without  change. 

"  6.  When  the  members  of  the  Defence  Association  shall  desire  a 
general  reduction  in  the  rate  of  wages,  or  the  Iron  Moulders'  Union 
an  advance,  they  shall  each  give  the  other  notice,  at  least  thirty 
days  before  the  end  of  each  year,  which  shall  commence  on  the  first 
day  of  April.  If  no  such  notice  be  given,  the  rate  of  wages  current 
during  the  year  shall  be  the  rate  in  force  for  the  succeeding  year." 


INDUSTRIAL   CONCILIATION.  185 

Under  this  agreement  as  to  moulding  prices,  we,  in 
1894,  because  of  general  depression  in  business,  and  in 
rates  for  labor,  would  have  been  justified  in  demanding 
a  considerable  reduction  in  the  rates  for  moulding,  but, 
after  consultation  among  ourselves,  we  concluded  that 
inasmuch  as  the  workmen  would  be  only  partially  em- 
ployed a  reduction  would  be  a  serious  hardship,  and 
that  as  the  depression  was  probably  to  be  but  temporary 
we  had  better  not  insist  upon  it,  although  we  had  no 
doubt  it  would  be  readily  conceded. 

We  did,  however,  in  conference,  make  an  arrangement 
whereby  it  was  agreed  that  in  event  of  a  reduction  of 
rates  for  moulding  being  secured  during  the  year  by  a 
stated  considerable  percentage  of  stove  manufacturers  in 
this  country  who  were  not  members  of  our  organization, 
the  opportunity  for  reduction  should  then  be  open  to  us. 
We  were  not  obliged  to  avail  ourselves  of  this  arrange- 
ment. We  tided  over  the  period  of  depression,  although 
it  was  not  temporary  but  protracted,  to  the  vast  advan- 
tage of  the  moulders,  and  possibly  without  detriment  to 
ourselves.  We  have  not  at  any  time  demanded  a  general 
reduction  under  the  rules. 

So  soon  as  prosperity  began  to  bud,  the  moulders 
began  to  insist  that  notice  be  given  by  their  officers  in 
ample  time,  in  order  that  they  might  be  ready  to  partici- 
pate in  the  improved  conditions  from  the  ist  of  April 
following.  A  demand  for  an  advance  was  made,  a  con- 
ference convened,  and  it  was  agreed  that  as  we  made  no 
reduction  when  general  reductions  occurred,  the  time 
for  us  to  advance  had  not  arrived,  and  that  the  rates 
then  prevailing  should  remain  the  rates  for  the  year 
teminating  April  i,  1898. 

Early   in    1898   the    moulders   again   demanded    an 


1 86  INDUSTRIAL   CONCILIATION. 

advance  to  take  effect  April  ist,  and  a  conference 
was  called  to  consider  it.  After  thorough  discussion  by 
the  committee,  an  advance  of  ten  per  cent,  in  mould- 
ers' wages  for  the  year  to  terminate  April  i,  1899,  was 
conceded. 

In  March,  1900,  another  conference  was  held,  at 
which  a  further  advance  of  five  per  cent,  was  made,  to 
take  effect  on  April  ist  last. 

Thus  it  would  seem  that,  from  the  standpoint  of  the 
employee,  our  plan  of  conference  has  been  demonstrated 
to  be  a  remarkable  success.  By  means  of  it,  a  long 
period  of  depression  was  passed  without  any  reduction 
of  their  rates,  and  when  a  time  of  general  prosperity 
arrived,  they  were  enabled  to  promptly  share  in  it  with- 
out strife,  and  without  loss  of  an  hour's  time.  So  that 
those  moulders  working  in  the  foundries  of  the  members 
of  our  association  are  direct  gainers  thereby  to  the 
extent  of  hundreds  of  thousands  of  dollars. 

The  employer  derived  comfort  and  satisfaction  from 
the  stability  and  reliability  secured,  as  well  as  from  the 
peaceful  and  harmonious  relations  existing  in  this  de- 
partment of  his  business.  I  have  no  doubt  such  condi- 
tions inure  to  his  pecuniary  advantage,  when  secured  by 
so  just  and  fair  a  method. 

While  our  association  has  no  agreement  for  use  of  this 
plan  with  workmen  in  departments  of  our  business  other 
than  moulding,  we  have  practised  it  in  some  of  them  in 
a  partial  manner  only,  by  common  consent,  with  good 
results.  Some  strikes  have  occurred  in  such  other  de- 
partments that  were  more  or  less  serious,  each  of  which 
would  have  been  entirely  avoided  had  the  method  been 
applied  in  full,  under  an  agreement. 

Our  plan  had  been  in  successful  operation  for  more 


INDUSTRIAL   CONCILIATION.  1 8? 

than  five  years  before  I  observed  any  important  reference 
to  it,  or  to  a  similar  idea,  from  any  source  other  than 
such  as  was  directly  or  indirectly  associated  with  the 
foundry  business,  or  that  had  received  it  directly  from 
our  organization.  However,  in  1896,  what  seems  to  me 
to  be  a  very  thorough  endorsement  came  from  England. 
An  Associated  Press  dispatch  was  printed  in  the  news- 
papers, dated  New  York,  November  28th,  which  con- 
tained the  following: 

"  Samuel  Woods,  the  English  labor  leader  and  ex-member  of 
Parliament,  Secretary  of  the  Trades'  Union  Congress  of  Great 
Britain,  arrived  on  the  Campania  this  morning.  Mr.  Woods  comes 
to  the  United  States  as  a  delegate  from  the  Trades'  Union  Congress 
of  Great  Britain  to  the  Convention  of  the  American  Federation  of 
Labor  at  Cincinnati,  December  I4th.  He  is  accompanied  by  John 
Mallinson,  English  labor  leader  and  delegate  to  the  Convention. 

"  '  I  do  not  believe  in  strikes,"  said  Mr.  Woods  ;  "I  have  little 
faith  in  arbitration  either.  I  am  a  firm  believer  though,  in  a  policy 
which  I  call  conciliation.  If  interested  parties,  who  know  all  about 
a  dispute,  cannot  settle  it,  how  can  a  third  party,  who  knows  noth- 
ing at  all  about  it,  help  them  to  reach  an  agreement  ? '  " 

As  to  how  important  an  endorsement  of  our  plan  this 
is,  I  do  not  know,  but  surely  it  is  thorough.  I  do  not 
believe  that  any  other  method  of  adjustment  of  indus- 
trial questions  or  disagreements  between  employers  and 
employees  has  been  devised  and  practised  that  promises 
as  nearly  universal  satisfaction  and  advantage  to  all 
concerned  as  does  our  agreed  upon  method  of  concilia- 
tion through  conference,  and  I  am  sure  that  genuine 
arbitration,  voluntary  or  compulsory,  does  not. 


CONFERENCES     OF     LONGSHOREMEN     AND 
DOCK   MANAGERS. 

BY    DANIEL    J.     KEEFE,     PRESIDENT     OF     THE     INTERNA- 
TIONAL LONGSHOREMEN'S   ASSOCIATION. 

THE  International  Longshoremen's  Association  was 
organized  in  1893  for  the  purpose  of  securing  for 
the  various  local  bodies  uniform  conditions  as  to  the 
scale  of  wages  as  far  as  practicable,  to  eliminate  abuses, 
to  adjust  the  many  or  frequent  differences  that  are 
prone  to  arise,  and  to  elevate  the  standard  of  the  mem- 
bers, morally  and  intellectually.  At  the  outset  we  en- 
countered much  opposition,  due  principally  to  the 
prejudice  on  the  part  of  the  employers,  who  refused 
to  recognize  or  meet  with  committees  of  our  members; 
feeling  that  we  were  irresponsible  and  no  agreement  or 
arrangement  could  be  entered  into  that  would  bind  us  or 
compel  the  organization  to  respect  its  obligations.  The 
low  estimate  in  which  the  average  dock  worker  was  held 
was  in  a  measure  responsible  for  the  lack  of  confidence 
on  the  part  of  the  employers.  This  condition  was  largely 
due  to  the  lack  of  uniform  business  methods,  or,  I  might 
add,  the  absence  of  methods,  as  well  as  the  lack  of  re- 
straint or  prohibition  of  excessive  or  exorbitant  demands 
when  the  employers  were  found  to  be  at  the  mercy  of  the 
local  workers. 

The  fact  that  the  labor  of  a  dock  worker  requires  great 
188 


INDUSTRIAL   CONCILIATION.  189 

physical  strength  and  endurance  does  not  necessarily 
imply  that  the  dock  worker  must  be  low  in  the  scale  of 
intelligence;  while  the  calling  does  not  require  a  high 
grade  of  intelligence,  yet  the  high  wages  incident  to 
organization  has  raised  the  standard  of  the  dock  worker, 
so  that  its  ranks  to-day  number  many  mechanics  whose 
trade  does  not  offer  the  compensation  of  the  dock  worker, 
as  well  as  many  mechanics  whose  trade,  owing  to  the 
introduction  of  labor-saving  machinery,  has  relegated 
them  to  common  labor.  Again,  it  is  a  well-known  and 
recognized  economic  truth  that  the  higher  the  wage  paid 
to  any  trade  or  calling,  the  higher  in  proportion  is  the 
intelligence  of  the  worker. 

To-day,  to  demonstrate  how  our  organization  is  re- 
garded by  employers,  who  looked  upon  us  formerly  as 
irresponsible  workmen,  we  can  point  with  pride  to  a 
host  who  are  the  warmest  friends  of  our  organization, 
and  who  respect  any  agreement  we  make,  with  the  feel- 
ing that  no  unfair  or  undue  advantage  will  be  taken  by 
the  dock  worker  who  is  a  member  of  our  organization. 

The  longshoremen's  or  dock  workers'  organization  is 
one  of  the  few  institutions  that  meets  with  its  employ- 
ers in  joint  conferences  or  conventions,  to  settle  questions 
of  wages  and  other  conditions,  decisions  to  remain  in 
full  force  and  effect  for  a  certain  period.  And  we  can 
say  without  fear  of  contradiction  that  we  have  had  but 
very  little  dissatisfaction  found  on  the  part  of  the  employ- 
ers on  account  of  our  failure  to  carry  out  such  agreements. 

In  our  different  arrangements  that  cover  the  various 
kinds  of  dock  work,  we  always  have  a  clause  inserted, 
that,  "  In  the  event  of  any  dispute  arising  between  our 
men  and  their  employers,  the  men  will  continue  to  work 
without  any  strike  or  lockout,  until  such  time  as  the 


190 


INDUSTRIAL    CONCILIATION. 


differences  are  adjusted  by  arbitration,  as  provided  for 
in  said  agreement."  There  is  no  question  about  the 
arbitration  being  a  success,  as  the  arbitrators  are  selected 
as  follows:  "  The  employees  to  select  one,  the  employers 
to  select  one,  and  they  two  to  select  the  third  arbitrator, 
but  in  the  event  of  their  not  being  able  to  agree  on  the 
third  arbitrator,  then  each  side  shall  select  a  disinterested 
arbitrator,  and  those  two  shall  select  the  third  arbitrator. 
The  finding  of  the  majority  to  be  final." 

The  longshoremen's  organization  has  insisted  on  all 
its  agreements  being  carried  out  in  both  letter  and  spirit. 
To  illustrate  the  fairness  with  which  the  longshoremen 
deal  with  their  employers, —  we  have  in  the  port  of 
Buffalo  a  local  union,  which  violated  its  agreement  with 
the  employers  during  the  month  of  July,  while  a  con- 
vention of  the  longshoremen  was  being  held  in  Duluth, 
Minn.  The  matter  was  brought  to  the  attention  of  the 
convention,  and  it  immediately  notified  our  local  repre- 
sentative to  furnish  men  at  our  expense  to  take  the  places 
of  our  men  who  had  violated  the  agreement,  and  they 
were  not  members  of  our  organization. 

We  had  another  instance  of  violation  of  the  arbitration 
clause  by  one  of  our  locals  at  the  port  of  Cleveland. 
The  organization  instructed  the  men  to  return  to  work 
and  submit  their  grievance  to  arbitration,  which  they 
did.  The  arbitration  board  rendered  a  finding  in  favor 
of  the  men.  Those  perhaps  are  the  only  two  violations 
of  any  consequence  that  have  occurred  out  of  our  many 
agreements  during  the  year  of  1900. 

We  contend  that  proper  conditions  can  be  secured 
only  through  the  employers  meeting  with  their  em- 
ployees in  joint  conferences  and  conventions  and  dis- 
cussing the  questions  of  wages  and  other  conditions 


INDUSTRIAL   CONCILIATION.  19! 

pertaining  to  their  mutual  interests  fairly  and  freely, 
and,  after  due  and  careful  consideration,  entering  into  an 
agreement,  such  agreement  guarding  against  any  strike  or 
lockout,  and  providing  for  adjustment  by  some  method 
of  arbitration.  During  these  discussions  the  employers 
and  the  employees  can  become  acquainted  with  each 
other,  and  understand  that  their  interests  are  mutual, 
and  that  they  are  not  watching  to  take  any  advantage 
that  may  offer  of  each  other,  but,  on  the  contrary,  are 
ready  to  co-operate  with  each  other  and  bring  about 
the  very  best  possible  results  for  all  parties  concerned. 
When  the  employer  can  understand  that  his  employee 
is  not  waiting  the  opportune  moment  to  take  undue  ad- 
vantage of  him,  by  compelling  him  to  comply  with  un- 
reasonable and  exorbitant  demands,  and  the  employee, 
on  the  other  hand,  can  understand  that  the  employer  is 
not  trying  to  reduce  his  condition  to  slavery,  by  paying 
only  starvation  wages,  and  taking  any  other  advantage 
that  might  offer  to  reduce  his  condition, — when  this 
thing  can  be  understood,  it  will  be  because  the  employer 
meets  with  his  employees  and  gives  them  an  opportunity 
to  present  their  demands.  The  employer,  on  the  other 
hand,  will  have  the  same  opportunity  to  show  his  em- 
ployees that  the  conditions  will  not  permit  of  his  comply- 
ing with  their  demand.  There  is  no  question  in  my 
mind  but  that  this  policy  would  be  the  means  of  prevent- 
ing a  great  amount  of  friction  in  the  future. 


ORGANIZATION  OF  EMPLOYERS. 

BY    FREDERICK    P.    BAGLEY. 

I  SHALL  address  you  upon  the  necessity  for  organiza- 
tion among  employers.  To  meet  a  question  which 
may  have  arisen  as  to  the  pertinency  of  my  subject  to  the 
conference  called  for  the  specific  purpose  of  considering 
arbitration,  permit  me  to  state  that  later  I  shall  attempt 
to  show  a  definite  relation  between  the  two,  and  further, 
that  an  important  if  not  imperative  reason  exists  for  the 
introduction  of  the  present  inquiry  at  this  point  of  our 
nation's  industrial  development. 

In  this  paper  it  is  assumed  that  the  conference  is 
agreed  on  the  following  premises: 

First.  That  no  longer  are  we  mainly  an  agricultural 
country.  We  have  developed  into  a  producing  and 
manufacturing  nation,  in  which  are  towns,  cities,  and 
districts  solely  dependent  upon  the  continued  success  of 
the  mines  and  industries  located  therein. 

Second.  That  by  means  of  rapid  and  cheap  transporta- 
tion manufacturers  are  no  longer  able  to  control  the  trade 
of  the  district  in  which  they  are  located.  They  must 
meet  competition  from  adjacent  or  distant  States  and  in 
some  instances  from  foreign  countries.  An  illustration 
of  the  possibilities  of  cheap  transportation  was  furnished 
the  other  day  by  a  man  who  stated  that  in  ascertaining 
the  cost  of  transporting  a  certain  raw  product  from 

192 


INDUSTRIAL   CONCILIATION.  193 

Arizona  to  London  he  found  that  the  rate  was  less  than 
from  Arizona  to  Chicago — low  enough  to  admit  of  his 
selling  his  product  in  the  London  market  in  competition 
with  that  produced  in  Europe. 

Third.  That  in  many  lines  of  industry  the  production 
is  greater  than  our  consumption.  If  the  plants  are  to 
be  kept  in  profitable  and  regular  operation  the  supplies 
must  be  disposed  of  in  the  markets  of  the  world  in 
competition  with  similar  goods  manufactured  in  other 
countries. 

Fourth.  That  the  cost  and  conditions  of  manufactur- 
ing must  be  such  as  to  admit  of  the  finished  product 
being  sold  in  competition.  In  the  great  engineers'  strike 
in  England  the  employers  by  organization  freed  them- 
selves from  labor  restrictions  that  had  prevented  them 
from  producing  their  goods  at  a  price  that  would  allow 
them  to  compete  in  their  own  and  the  world's  markets. 
Those  restrictions  and  the  subsequent  strike  checked 
English  trade  and  helped  American  and  Continental 
manufacturers  to  secure  customers  and  permanent  trade 
connections. 

Fifth.  That  a  disturbance  of  any  nature  or  a  radical 
change  in  the  cost  or  conditions  of  production  is  to  be 
avoided  as  being  liable  to  injure  employer  and  employee. 
Some  time  ago  a  Chicago  union  made  demands  on  a 
manufacturers'  association  as  to  wages  and  shop  condi- 
tions which  if  granted  would  have  made  competition 
with  firms  located  outside  of  Chicago  impossible.  The 
union  was  willing  to  make  Chicago  a  closed  market  as  to 
outside  manufacturers,  but  as  the  local  market  could  not 
absorb  the  capacity  of  the  plants  located  here  and  the 
union  would  not  withdraw  its  demands,  a  strike  ensued 
that  lasted  for  nearly  a  year.  It  was  finally  won  by  the 


194  INDUSTRIAL   CONCILIATION. 

manufacturing  association  at  a  heavy  cost  of  time  and 
money.  The  men  lost  largely  in  wages  and  the  union 
was  broken  up. 

Sixth.  That  to-day  as  a  rule  all  large  enterprises  are 
conducted  upon  a  scientific  basis  with  the  principle  of  a 
small  percentage  upon  a  large  turnover.  The  business 
policy  suited  to  the  past  generation  is  an  antiquated  con- 
trivance wholly  inadequate  to  the  situation  to-day. 
Manufacturers  years  ago  made  a  good  living  while  using 
a  plain  slide-valve  engine.  It  consumed  a  large  amount 
of  coal  and  generated  a  comparatively  small  amount  of 
power.  It  was  the  best  there  was,  however,  and  the 
high  percentage  of  profits  covered  the  loss  caused  by 
waste.  But  no  one  can  afford  to  use  that  old  machine 
to-day.  In  its  place  stands  the  quadruple-expansion 
engine  in  which  every  item  of  waste  and  energy  is  ac- 
counted for,  where  each  part  performs  its  function  in 
harmony  with  the  whole;  giving  the  greatest  result  with 
the  least  expenditure.  This  high  productivity  carries 
with  it  delicacy  of  organization  and  adjustment.  Hot 
bearings  and  friction  once  ignored  must  now  be  remedied 
immediately  if  a  heavy  loss  is  to  be  avoided.  With  these 
exacting  requirements  on  the  one  hand,  the  manufac- 
turers are  on  the  other  hand  face  to  face  with  a  group  of 
facts: 

First.  That  labor,  which  they  must  have  and  the  price 
of  which  enters  so  largely  into  the  cost  of  their  product, 
is  organized  and  through  its  organization  seeks  to: 

A.  Substitute  collective  for  individual  bargaining; 

B.  Set  the  rate  of  wages; 

C.  Fix  the  conditions  of  employment  as  to  hours,  pro- 
duction, etc. ; 

D.  Say  who  of  the  community  may  or  may  not  work. 


INDUSTRIAL    CONCILIATION.  195 

All  of  which  are  most  radical  departures  from  previous 
conditions.  They  merge  the  individual  into  the  mass 
and  change  loyalty  to  the  employer  into  loyalty  to  the 
organization. 

Second.  That  from  this  organization  of  labor  have 
sprung  an  entirely  new  set  of  conditions  affecting  labor, 
capital,  and  the  State — conditions  that  are  pregnant  with 
danger  to  all  three. 

How  to  meet  these  new  conditions  in  order  that  what 
is  good  in  them  for  capital,  labor,  and  the  State  may  be 
brought  out,  and  what  is  wrong  to  any  one  of  the  three 
crushed,  is  the  problem  that  the  employers  must  of  neces- 
sity solve  for  their  business  safety.  The  moral  re- 
sponsibility to  do  so  is  also  theirs,  for  upon  the  proper 
adjustment  of  the  relationship  of  these  three  interests 
depends  the  future  peace  and  prosperity  of  this  country. 

Before  attempting  to  work  out  a  solution,  the  employer 
must  ascertain  to  what  extent  the  organization  of  labor 
has  gone,  and  the  power  that  lies  in  organizations.  He 
then  must  decide  whether  he  can  cope  with  the  problem 
alone,  or  must  depend  upon  organization  to  modify 
organization. 

For  the  investigation,  and  as  the  basis  of  subsequent 
actions,  the  scientific  method  should  be  used,  no  matter 
where  the  deductions  may  lead.  All  prejudice  for  or 
against  capital  or  labor,  all  sentimentalism,  idealism,  and 
half  thinking  must  be  laid  aside.  The  cold,  hard  facts 
of  the  natural  development  of  the  competitive  system  are 
here  with  us  to-day.  Society  needs,  as  never  before, 
cool,  clear  thinking,  to  enable  it  to  meet  the  conditions 
that  have  arisen  in  the  last  decade  and  the  new  ones  that 
are  crowding  forward  every  day.  It  should  be  recog- 
nized that  organized  labor  like  organized  capital  is 


196  INDUSTRIAL   CONCILIATION. 

disposed  of  and  controlled  by  men — not  gods  or  demi- 
gods —  with  the  same  passions,  temptations,  virtues, 
weaknesses,  and  ambitions. 

In  its  organized  form,  capital  may  be  divided  into 
three  classes: 

A.  Corporations; 

B.  Combinations — or  groups  of  corporations; 

C.  Combinations  of  combinations — or  the  consolida- 
tion of  groups  of  organizations. 

The  higher  forms  of  labor  exactly  correspond; 

A.  For  corporations  you  have  unions; 

B.  For   combinations  you  have  the  national  organ- 
izations  of   the   different  trades  controlling   the   trade 
throughout  the  United  States; 

C.  For  combinations  of  combinations  you  have  the 
American  Federation  of  Labor,  which  covers  practically 
the  entire  organized  labor  field  of  the  United  States. 

It  will  be  seen  that  labor  is  as  highly  organized  as 
capital,  and,  to  those  who  are  following  developments  in 
the  industrial  world,  it  is  apparent  that  labor  seeks  to 
extend  its  power  in  unorganized  industries  and  districts, 
the  same  as  capital  is  doing. 

Speaking  generally,  in  one  respect  organized  labor  is 
behind  organized  capital,  that  is,  in  unity  of  action  and 
subordination  to  a  head.  This  is  being  rapidly  remedied. 
Discipline  and  unison  of  action  are  being  perfected, 
and  the  authority  of  the  leaders  is  more  recognized  and 
obeyed.  If  their  ideal  in  this  direction  is  attained,  the 
discipline  of  an  army  will  be  observed  by  organized 
labor. 

Whether  capital  has  taken  upon  itself  the  forms  as- 
sumed by  labor  or  labor  has  followed  the  examples  set  by 
capital,  is  immaterial.  The  facts  are,  that  in  most  in- 


INDUSTRIAL   CONCILIATION.  197 

dustries  of  this  country  labor  is  organized  into  unions ; 
that  these  unions  are  centralized  into  national  organiza- 
tions to  which  they  are  subordinate;  that  these  unions 
are  further  centralized  and  the  power  more  concentrated 
by  being  either  directly,  or  through  their  national 
organizations,  members  of  the  American  Federation  of 
Labor,  a  body  co-extensive  with  the  United  States. 
The  possibilities  for  good  and  evil  are  at  once 
apparent. 

In  the  past,  on  the  side  of  the  employers,  leaving  out 
the  stove  manufacturers  and  one  or  two  other  trades, 
what  had  the  employers  to  show  in  the  way  of  organiza- 
tion to  adjust  labor  questions  ?  Nothing  that  could  be 
mentioned  without  a  blush.  Small,  local,  decentralized, 
weak-kneed  affairs,  where  nearly  every  individual  felt  his 
importance,  was  jealous  or  suspicious  of  his  neighbor, 
was  tricky  or  disloyal  to  his  leaders,  the  ape  and  the 
tiger  forever  showing  in  their  character,  easy  to  divide, 
consequently  easy  victims.  How  to  explain  the  amazing 
indifference  and  apathy  of  the  average  employer  to  the 
changes  affecting  his  business  future  that  have  been 
going  on  about  him  in  the  labor  world  is  simply  impos- 
sible except  upon  the  ground  that,  like  the  hog,  he  has 
been  so  busy  getting  the  dollars  that  were  in  the  trough 
in  front  of  his  nose  that  he  has  been  oblivious  to  all 
else.  The  relations  of  the  unorganized  individual  em- 
ployer to  organized  labor  is  as  the  relation  of  the  indi- 
vidual manufacturer  to  a  trust. 

To  measure  the  latent  powers  and  possibilities  of  an 
organization,  a  ground  should  be  selected  where  that 
organization  has  had  a  free  and  untrammelled  growth — 
where  it  has  blossomed  and  borne  its  fruit  in  the  fulness 
of  its  vigor  and  maturity.  The  organization  selected 


198  INDUSTRIAL   CONCILIATION. 

is  taken  solely  because  it  illustrates  perfectly  what  such 
an  organization  can  accomplish,  and  is  a  part  of  the 
writer's  personal  experience.  The  results  are  to  be 
considered  as  bearing  on  cost  of  production. 

For  a  number  of  years  the  Building  Trades  Council  of 
Chicago  was  the  most  perfectly  organized  combination 
of  labor  that  this  country  has  ever  known.  It  had 
actually  reached  the  goal  of  unionism,  which  is  to  con- 
trol the  labor  used  in  a  given  industry.  Not  a  man  of 
the  thirty-five  to  fifty  thousand  employed  in  the  building 
industry  of  Chicago  could  work  without  first  procuring 
and  paying  for  a  license  from  this  organization.  It  had 
never  been  successfully  opposed,  therefore  it  affords  the 
best  possible  example  of  an  unmodified  centralized  or- 
ganization carried  to  its  logical  end.  An  analysis  of 
the  results  should  show  whether  the  laws  governing  the 
development  of  power  through  organization  hold  true 
here  as  elsewhere. 

The  fact  that  it  was  a  centralized  body  to  which  be- 
longed a  large  number  of  different  trades  adds  interest, 
since  if  but  one  trade  were  being  examined  the  results 
might  be  thought  to  be  peculiar  to  that  trade.  But  here 
were  many  trades,  composed  of  all  nationalities,  working 
in  one  industry,  under  the  same  conditions  and  in  the 
same  central  organization. 

Upon  what  plans  the  council  was  built,  how  the  power 
to  call  strikes  without  referring  the  matter  to  either  the 
unions  or  the  council  was  centred  in  an  anomalous  body, 
the  Board  of  Business  Agents,  with  its  own  officers  and 
rules  (Article  IX.,  Sees,  i,  2,  3,  Art.  XIII.,  Sees,  i,  2); 
what  effect  the  latter  had  on  the  unions  and  on  the 
business  agents  themselves,  are  not  pertinent  to  this 
subject.  When  the  history  of  this  council  shall  be  writ- 


INDUSTRIAL   CONCILIATION.  199 

ten  it  will  furnish  food  for  thought  to  the  union  workman, 
the  employer,  and — as  is  devoutly  hoped  by  both — to 
the  ignorant  sentimentalists,  male  and  female.  The 
question  is,  what  were  these  groups  of  men  able  to  ac- 
complish by  being  organized  ? 

i st.  In  certain  trades  the  amount  of  work  a  man  was 
allowed  to  perform  in  eight  hours  was  fixed  (lathers, 
plumbers,  steam-fitters,  tile-  and  mantle-setters). 

2d.  In  one  organization,  the  business  agent  fixed  the 
number  of  men  that  should  be  employed  on  a  job 
(plasterers). 

3d.  Certain  of  the  unions  (plumbers  and  tile-setters) 
prohibited  the  use  of  apprentices.  Another  (lathers) 
prohibited  them  for  five  years. 

4th.  The  use  of  machinery  in  another  trade  (stone- 
cutters) was  prohibited,  and  where  an  employer  was 
found  using  it  he  was  arbitrarily  fined  and  his  factory 
closed  until  he  paid  the  money  into  the  union. 

5th.  Agreements  with  employers'  associations  were 
broken  (plumbers,  stone-cutters,  laborers,  and  hod-car- 
riers). 

6th.  Restrictions  were  placed  on  raw  and  finished 
material,  whether  made  by  union  or  non-union  labor 
(stone-cutters,  ornamental  iron  workers). 

yth.  The  workmen  in  one  trade  could  not  under  any 
circumstances  perform  any  work  in  another.  As  an  ex- 
ample, an  ordinary  laborer  could  not  touch  a  plasterer's 
scaffold,  as  it  was  the  work  of  a  plasterer's  laborer. 

8th.  The  indiscriminate  use  of  the  sympathetic  strike 
upon  the  slightest  excuse. 

Every  one  of  these  results  affects  cost  of  production. 
Most  of  them  would  make  it  impossible  for  a  manufac- 
turer to  produce  his  goods  at  a  price  that  would  admit 


200  INDUSTRIAL   CONCILIATION. 

of  his  selling  in  competition  with  manufacturers  not 
under  the  same  restrictions. 

The  main  causes  that  permitted  and  encouraged  these 
changes  from  legitimate  to  illegitimate  trade-unionism 
were: 

i st.  These  unions  were  a  highly  organized  and  cen- 
tralized body  in  contact  with  an  unorganized,  decentral- 
ized mass,  for  such  the  employers  were.  With  the 
sympathetic  strike  and  the  boycott  in  the  hands  of  the 
council  it  was  an  impossibility  for  any  firm  or  trade  to 
resist  the  imposed  conditions. 

2d.  Politics,  and  all  that  term  implies  to  our  American 
democracy  in  large  cities.  By  it  the  administration, 
police,  and  lower  courts  were  nearly  paralyzed  and  the 
individual  employer  was  blocked  at  every  turn  in  his 
efforts  to  obtain  justice.  He  controlled  but  one  vote. 
The  council  was  supposed  to  control  thousands.  He 
was  a  unit,  it  was  an  organization.  He  did  not 
count. 

Here  you  have  the  individual  employer  unable  to  resist 
uneconomic  conditions  that  are  put  upon  him  by  those 
who  do  not  share  his  responsibilities,  and  at  the  same 
time  impotent  to  secure  justice. 

It  is  granted  that  this  is  not  legitimate  unionism,  and 
that  possibly  the  heads  of  the  unions  were  not  wise  and 
good  leaders,  but  on  the  other  hand  it  must  also  be  ad- 
mitted that  the  results  were  only  possible  by  organization, 
that  the  same  possibilities  are  latent  in  every  centralized 
organization  whether  of  labor  or  capital,  and  that  the 
unions,  from  the  very  nature  of  things,  cannot  guarantee 
to  retain  their  present  able  and  conservative  leaders,  or 
to  replace  them  by  equally  strong  and  upright  ones.  If 
any  organization  is  unopposed  it  becomes  corrupt,  and 


INDUSTRIAL   CONCILIATION.  2OI 

the  worst  elements  in  it  are  able  to  rise  to  the  surface 
and  assume  control  for  personal  ends. 

Not  until  the  employers  became  organized  and  cen- 
tralized was  it  possible  to  change  these  conditions.  This 
is  not  the  time  to  relate  the  process  by  which  the  employ- 
ers finally  succeeded  in  their  twofold  aim,  namely,  that 
of  changing  those  conditions,  and  at  the  same  time 
preserving  the  integrity  of  the  unions. 

Two  details,  however,  are  material:  one,  that  all  the 
agreements  between  employers'  organizations  and  the 
unions  shall  contain  an  arbitration  clause.  The  other  is 
the  effort  made  by  the  employers'  organization  towards 
arbitration.  This  is  of  vital  importance  to  the  unorgan- 
ized employer.  At  the  outset,  with  the  hope  of  obtain- 
ing the  changes  by  peaceable  methods,  the  employers 
made  two  attempts  at  arbitration  with  the  Building 
Trades  Council.  The  first  did  not  get  beyond  the 
opening  meeting,  owing  to  the  fact  that  the  councils' 
committee  never  returned  or  paid  any  further  attention 
to  the  requests  of  the  employers'  committee.  The 
second,  made  several  months  later,  was  more  successful 
in  that  an  agreement  was  reached  and  signed  by  the  two 
committees.  It  was  ratified  by  the  employers  the  next 
day.  No  action  was  taken  on  it  by  the  council,  nor 
was  any  reply  ever  made  to  communications  sent  to  the 
council  by  the  employers  notifying  it  of  the  employers' 
ratification  and  asking  for  an  answer  as  to  the  intention 
of  the  council  with  regard  to  the  agreement.  Arbitra- 
tion is  not  a  practical  measure  unless  a  degree  of  equality 
exists  between  the  divergent  parties.  There  are  rela- 
tionships so  far  removed  from  each  other  by  the  might 
of  the  one  and  the  weakness  of  the  other  that  an  ap- 
peal for  mercy  is  proper  and  a  request  for  arbitration 


2O2  INDUSTRIAL    CONCILIATION. 

presumptuous.  It  was  as  though  a  Chinese  subject  under 
sentence  had  asked  the  Emperor  to  arbitrate  the  ques- 
tion. Supposing  the  last  effort  at  arbitration  had  been 
between  the  council  and  an  individual,  what  could  he 
have  done  ?  In  other  words — and  they  are  the  cause  of 
this  paper  being  presented  in  this  arbitration  conference 
— on  both  sides  to  an  arbitration  you  must  have  organi- 
zations to  carry  out  the  decisions  or  agreement;  organiza- 
tions that  will  not  only  see  that  the  other  party  lives  up 
to  its  agreements  but  also  that  its  own  members  do 
likewise.  The  organizations  should  stand  for  peace  and 
should  co-operate  to  the  end  that  justice  shall  be  the 
portion  of  all. 

The  evils  and  the  good  that  have  sprung  from  organi- 
zation of  capital  and  organization  of  labor  are  not 
because  the  organizations  were  composed  of  either  em- 
ployers or  workmen  as  such.  If  it  were  possible  to  have 
the  employers  and  the  workmen  exchange  places  in  the 
membership  of  their  organizations  the  results  from  each 
organization,  as  far  as  the  abilities  of  the  leaders  fitted 
the  new  conditions,  would  be  the  same  as  they  were 
before.  It  is  that  groups  of  men  by  organization  and 
concentration  of  power  are  enabled  to  accomplish  results 
beyond  the  capacity  of  any  one  of  the  individuals  com- 
posing the  organization.  The  assembling  together  of  a 
number  of  human  units  with  a  oneness  of  purpose  and 
action,  disciplined  and  controlled  by  a  central  authority, 
generates  a  force  that  the  unorganized  cannot  resist  or 
guide.  Should  this  force  be  used  to  its  fullest  extent 
by  the  leaders  for  either  personal  ends  or  for  the  benefit 
of  the  organization  as  against  the  remainder  of  the  com- 
munity disaster  will  follow.  Labor  says  that  organized, 
centralized  capital  controls  the  legislatures,  makes  and 


INDUSTRIAL   CONCILIATION.  2O3 

unmakes  laws,  in  other  words,  that  it  is  a  supreme  power 
in  the  land.  Capital  says  that  organized,  centralized 
labor  overrides  the  rights  of  individuals,  forces  special 
privileges  from  weak-kneed  administrations,  and  violates 
the  laws  protecting  life,  property,  and  freedom  of  action. 
If  the  organization  of  society  as  expressed  in  the  laws 
cannot  protect  the  rights  of  every  individual  in  the  State, 
then  those  that  are  deprived  of  their  lawful  rights  by  any 
organization  must  themselves  organize  and  seek  to  pre- 
serve those  rights.  In  no  other  way  can  self-protection 
be  secured.  The  rapacity  and  cupidity  of  employers 
have  forced  labor  to  organize  to  protect  the  individual. 
The  extreme  action  of  organized  labor  has  made  neces- 
sary organizations  of  employers  like  the  National  Stove 
Manufacturers'  Defence  Association  in  order  that  the 
rights  of  the  individual  manufacturer  may  be  preserved. 
In  this  particular  trade  the  organization  of  the  men  and 
the  organization  of  the  employers  modify  each  other, 
and  prevent  extremes  on  either  side.  There  is  a  mutual 
regard  for  each  other's  rights,  born  of  a  respect  for  the 
power  that  each  knows  lies  latent  in  the  other's  organi- 
zation. Each  requires  the  other  to  maintain  an  equili- 
brium. No  one  class  can  be  trusted  to  represent  the 
interests  and  lawful  right  of  another.  Even  were  one 
class  .altruistic  it  could  not  represent  another,  because  it 
could  not  comprehend  its  wants,  desires,  and  aspirations, 
In  industrial  adjustments  the  necessity  for  organiza- 
tions of  employers  is  already  felt  by  labor  leaders  as  well 
as  by  advanced  employers  themselves.  The  next  great 
change  in  the  evolution  in  the  relationship  of  labor  to 
capital  will  be  the  organization  of  employers,  not  for 
aggression,  but  to  modify  and  co-operate  with  organiza- 
tions of  labor. 


THE  ORGANIZATION  OF  THE  EMPLOYER 
CLASS  AS  A  PREREQUISITE  OF  CON- 
CILIATION AND  ARBITRATION. 

BY  HERMAN  JUSTI,  COMMISSIONER  OF  THE  ILLINOIS  COAL 
OPERATORS'  ASSOCIATION. 

WE  could  agree,  I  believe,  upon  the  general  propo- 
sition that  there  is  no  waste  so  destructive  of 
available  wealth  as  the  waste  of  enforced  idleness,  and 
that  strikes  may  be  ended,  and  are  generally  ended, 
without  settling  the  questions  involved.  In  a  majority 
of  cases  they  are  only  ended  by  exhaustion.  We  could 
even  broaden  this  proposition  and  unanimously  agree 
that  by  the  side  of  the  labor  problem  all  other  worldly 
problems  are  secondary,  since  the  very  foundations  of 
prosperity  rest  upon  the  relations  existing  between  the 
employer  and  the  employee  classes,  idle  labor  meaning 
idle  capital,  and  vice  versa.  Here  it  seems  everything  in 
the  industrial  world  begins  and  ends.  Agreement  so  far 
is  easy,  but  beyond  this  point  opinion  will  vary  as  to  the 
cause  of  strikes,  as  to  the  necessity  for  them,  and  as  to 
the  best  means  of  rendering  them  obsolete. 

To  me  it  seems  that  all  efforts  to  permanently  prevent 
strikes  are  almost  certain  to  fail,  unless  labor  and  capital 
are  both  thoroughly  organized,  the  strength  of  the  re- 
spective organizations  being  so  nearly  equal  that  neither 
side  can  presume  upon  the  weakness  or  unpreparedness 

204 


INDUSTRIAL   CONCILIATION.  2O$ 

of  the  other.  The  peace  of  nations,  as  we  well  know, 
is  preserved  by  the  fear  which  each  nation  has  of  waking 
a  sleeping  lion.  The  great  powers  of  the  world  have 
approximately  accurate  information  of  each  other's  re- 
sources, strength,  and  preparedness,  and  hence,  wars  in 
our  day  usually  occur  only  between  a  giant  on  the  one 
hand  and  an  infant  or  decrepit  nation  on  the  other. 
Differences  between  equally  strong  nations  are  left  for 
settlement  to  diplomacy.  The  same  is  in  a  certain  sense 
true  of  conflicts  in  the  industrial  world.  Labor,  while 
not  perfectly  organized  and  not  so  rich  in. resources  as 
capital,  and  therefore  unequal  in  a  protracted  industrial 
war,  is  so  much  better  organized  than  capital  that  in 
short,  decisive  conflicts,  in  continuous  skirmishings,  it 
usually  comes  out  the  victor.  This  statement,  I  well 
know,  has  been  discredited  in  some  quarters  by  labor 
leaders,  but  it  can  be  proven.  In  fact,  it  is  no  exaggera- 
tion of  the  truth  to  say  that  the  difference  in  favor  of  the 
organization  of  labor,  as  compared  with  the  organization 
of  capital  for  the  purposes  I  have  indicated,  is  as  great 
as  the  difference  in  the  discipline  and  power  of  the 
regular  army  and  of  a  hastily  improvised  home  guard. 

Combinations,  trusts,  and  corporations  are  spoken  of 
as  organized  capital.  This  is  misleading.  All  these  are 
consolidated  or  aggregated  capital,  consolidated  or  com- 
bined to  reduce  the  expense  of  doing  business,  to  other- 
wise cheapen  production,  or  to  control  or  regulate  the 
markets  of  the  world,  but  they  are  not  organized  in  the 
same  sense,  or  for  the  same  purpose,  for  which  labor 
is  organized.  Our  great  need  is  two  well  organized 
forces,  both  established  for  the  same  purpose,  viz.,  to 
determine  and  regulate  the  wages  and  the  conditions  of 
labor.  To  so  organize,  employers  must  profit  by  the 


206  INDUSTRIAL   CONCILIATION. 

examples  set  them  in  self-sacrifice  and  self-denial  by 
their  employees.  It  is  a  noteworthy  fact  that  the  thirty 
or  forty  thousand  coal  miners  in  Illinois  contribute  annu- 
ally in  cash  three  hundred  and  sixty  thousand  dollars 
for  the  support  of  their  union,  and  what  they  thus  con- 
tribute is  small  as  compared  with  what  they  sacrifice  by 
strikes. 

Until  the  employer  class  organizes  and  establishes  col- 
lectively a  department  of  labor,  just  as  individually  or 
in  corporate  capacity  employers  provide  for  their  execu- 
tive and  their  construction  departments,  their  financial 
and  their  sales  departments,  strikes  will  continue;  and 
if  strikes,  therefore,  are  to  become  obsolete  in  America 
every  department  of  industry  must  be  thus  organized. 
It  was  with  this  end  in  view  that  the  Illinois  Coal  Opera- 
tors' Association  was  organized,  with  myself  as  Commis- 
sioner. 

This  experiment  has  attracted  attention  and  elicited 
favorable  comment  in  this  country  and  in  Europe,  and 
the  Illinois  coal  operators'  plan  is  therefore  fairly  well 
understood. 

The  attention  of  the  Conference  is  respectfully  called 
to  Section  2  of  Article  I.  of  the  Constitution  of  the  Mine 
Workers'  Union  of  America: 

"  The  objects  of  this  Union  are  to  unite  all  mine  employees  in  or 
around  the  mine  and  to  ameliorate  their  conditions  by  methods  of 
conciliation,  arbitration,  or  strikes." 

This  declaration  by  an  organization  of  laborers  with  a 
membership  of  about  two  hundred  and  thirty-five  thou- 
sand affords  an  excellent  text  for  practically  all  that  need 
be  said  on  the  subject  under  discussion. 

It  will  be  observed  that  the  order  in  which  such  dif- 


INDUSTRIAL   CONCILIATION.  2O/ 

ferences  or  disputes  shall  be  adjusted  is  by  first  trying 
conciliation,  but  that  plan  failing  there  shall  be  a  resort 
to  arbitration,  and  should  that  fail,  then,  and  not  till 
then,  is  the  strike  to  follow  as  a  last  resort. 

It  is  needless  to  attempt  to  fix  the  degree  of  respon- 
sibility upon  either  the  employer  or  the  employee  classes 
for  failing  to  proceed  with  the  adjustment  of  differences 
between  them  in  the  order  just  given.  Every  intelligent 
man  well  knows,  be  he  of  the  one  or  the  other  class,  that 
nearly  every  disorder  in  the  industrial  world  affecting 
what  is  commonly  called  capital  and  labor  is  due  to  the 
reversal  of  practically  all  in  Section  2  of  Article  I.  of 
the  document  which  I  have  just  read.  Differences  and 
disputes  are  sought  to  be  adjusted,  not  in  the  manner 
indicated,  but  by  first  striking,  then  by  trying  some 
doubtful  plan  of  arbitration,  and  finally  reaching  a  settle- 
ment by  means  of  conciliation. 

Conciliation  is  the  logical  and  the  only  way  of  settling 
nearly  all  differences  or  disputes  arising  between  em- 
ployer and  employee.  The  hope  to  be  fondly  cherished 
is  that  thoughtful  men  in  America  will  solve  the  great 
problem  of  labor  and  render  strikes  a  thing  of  the 
past,  by  religiously  observing,  not  the  practice,  but  the 
plan  outlined  by  the  mine  workers  of  trying  conciliation 
as  long  as  there  is  a  ray  of  hope  of  adjusting  differences 
by  that  plan,  but,  failing  to  so  adjust  them,  then  trying 
arbitration.  Let  it,  however,  be  clearly  understood  that 
the  plan  of  arbitration  agreed  to  is  not  to  be  such  a  plan 
as  merely  compromises  interests,  but  such  as  makes  an 
equitable  adjustment  to  be  accepted  as  a  precedent 
which  all  interests  involved  can  ever  after  safely  follow. 

To  me  it  seems  that,  mainly,  conciliation,  and,  in  ex- 
treme or  unusual  cases,  arbitration,  are  all  that  should  be 


208  INDUSTRIAL   CONCILIATION. 

necessary  to  insure  tranquillity  in  the  industrial  world, 
at  least  so  far  as  the  question  o*  labor  enters  into  the  in- 
dustrial problem.  In  order  to  terminate  a  strike  the 
remedies  are  finally  adopted  which  were  originally  pro- 
posed, or  that  naturally  suggested  themselves  to  fair  men, 
before  the  strike  was  inaugurated.  Why  then  not  adopt 
such  remedies  or  methods  at  once  ?  Settlement  by  con- 
ciliation, then,  being  the  common-sense  application  of  the 
Golden  Rule  to  differences  or  disputes  arising  between 
employer  and  employee,  and  the  settlement  of  differences 
and  disputes  being  founded  upon  what  each  side  finally 
concedes  to  be  right,  the  coal  operators  and  the  coal  min- 
ers of  Illinois,  through  the  representatives  of  organized 
bodies  of  each,  have  agreed  to  give  that  plan  a  fair  trial. 
The  wonder  is  that  in  view  of  the  great  destruction  of 
life  and  property  in  this  State  during  the  past  decade, 
some  such  common-sense  plan  was  not  tried  long  ago. 

It  may  be  interesting  to  know  that  in  few,  if  any,  of 
these  cases  the  question  of  wages  was  involved.  The 
disputes  arose  from  a  difference  of  opinion  as  to  the 
exact  meaning  of  certain  parts  of  the  joint  agreement, 
or  from  causes  in  no  way  connected  with  the  agreement. 

The  prescribed  limits  of  this  paper  render  it  impossible 
to  give  an  exact  account  of  what  are  the  most  fruitful 
causes  of  disputes  arising  between  employers  and  em- 
ployees, but  I  believe  I  can  safely  say  that  a  very  large 
percentage  of  them  could  have  been  avoided  by  the 
exercise  of  tact  and  kindness  upon  the  part  of  the  em- 
ployer class,  or  by  patience  and  a  due  regard  for  the 
interests  of  the  employer  upon  the  part  of  the  employees. 

Gratifying  as  has  been  the  success  of  this  experiment,  it 
stands  to  reason  that,  with  increasing  experience  of  those 
entrusted  with  the  investigation  and  adjustment  of  these 


INDUSTRIAL   CONCILIATION.  209 

disputes,  there  will  be  a  steady  improvement  in  the  sys- 
tem itself,  made  possible  by  an  increasing  knowledge  of 
the  conditions  existing  in  and  about  the  mines  and  of  the 
rights  of  both  the  employer  and  the  employee,  to  the  end 
that  average  harmony  shall  prevail. 

If  the  Illinois  plan  is  generally  adopted  and  a  great 
central  body  is  established,  we  shall  then  have: 

1.  An  American  Federation  of  Industries  resembling 
in  experience,  influence,  and  power  the  American  Fed- 
eration of  Labor. 

2.  A  National  Board  of  Arbitration  composed  of  men 
specially  and  directly  chosen  by  all  the  interests  involved 
because  of  their  training,   education,  occupation,  and 
tastes,  and  indebted  for  their  appointment  to  no  office- 
holder nor  to  any  political  party. 

It  is  not  intended  that  under  this  plan  all  the  members 
of  the  board  of  arbitration  shall  sit  in  every  case,  but  it 
would  be  possible  to  have  different  sets  of  arbitrators 
take  up,  at  practically  the  same  time  and  at  different 
places,  different  cases  submitted  to  the  board. 

In  carrying  out  the  idea  of  having  the  board  of  arbitra- 
tion as  far  removed  as  possible  from  the  direct  interests 
involved  in  the  question  to  be  considered,  there  should, 
however,  be  one  representative  from  the  employer's  and 
one  from  the  employee's  side  which  are  directly  interested 
on  every  commission  or  board  designated  to  hear  the 
cases  submitted. 

Let  us  say,  for  example,  that  it  is  agreed  there  shall 
be  three  arbitrators  selected  from  each  side.  Should 
these  six  not  be  able  to  agree,  then  a  seventh  man  shall 
be  selected.  To  select  an  arbitrator  to  give  a  final  de- 
cision is  usually  a  great  stumbling-block.  This  difficulty, 
however,  can  be  overcome  in  this  way :  that  the  seventh 


210  INDUSTRIAL   CONCILIATION. 

man  shall  be  a  member  of  the  general  board  of  arbitra- 
tion and  he  may  be  any  one  of  the  general  board,  to  be 
selected  by  lot  if  he  cannot  be  selected  by  agreement, 
but  he  must  not  be  interested  in  the  particular  interests 
involved.  There  may  be  cases  to  decide  which  would 
embarrass  the  direct  representatives  of  labor,  if  not 
also  the  representatives  of  capital.  The  human  ele- 
ment in  all  of  us  (which  makes  self-preservation  the  first 
law  of  nature)  affects  pacificators  and  mediators  at  times 
just  as  it  does  other  men.  The  officials  of  labor  organi- 
zations, as  well  as  the  representatives  of  capital,  will  find 
it  hard  always  to  render  such  a  decision  as  is  to  be  ex- 
pected from  a  body  entirely  free  from  all  entanglements 
and  not  subject  to  the  orders,  caprice,  or  venom  of  local 
unions  or  direct  business  interests.  We  well  know  there 
are  some  men  both  in  the  ranks  of  capital  and  labor  who 
cannot  see  any  one's  rights  but  their  own.  Their  ever- 
lasting enmity  would  be  incurred  by  an  adverse  decision 
of  their  own  immediate  representatives.  Arbitrators 
should  therefore  be  protected  against  temptation  in 
every  form. 

One  of  the  questions,  for  example,  which  a  non- 
political  board  of  arbitration,  such  as  I  have  suggested, 
could  perhaps  settle  better  than  it  could  be  settled  in 
any  other  way,  or  before  any  other  board  of  arbitration, 
is,  let  us  say,  the  question  as  to  whether  the  man  man- 
ipulating typesetting  machines,  or  the  proof-reader, 
should  be  members  of  the  Typographical  Union,  or 
whether  they  should  continue  in  separate  and  distinct 
organizations,  or  whether  proof-readers  should  be  mem- 
bers of  any  organization  at  all,  since  the  position  held  by 
publishers  is  that  they  should  be  company  men  strictly. 

What  we  need  then  is  a  wise  and  sincere  utterance  on 


INDUSTRIAL   CONCILIATION.  211 

all  those  vexed  questions  which  have  been  productive  of 
the  greatest  friction  between  capital  and  labor,  and  not 
until  such  an  expression,  at  all  times  available,  has  been 
given,  will  public  opinion  be  healthy  nor  will  public 
sympathy  go  where  it  rightly  belongs. 

Thus  a  great  educational  system  would  spring  up  to 
educate,  not  the  masses  of  the  people  alone,  but  their 
teachers,  the  pulpit  and  the  press. 

Such  a  body  of  men  would  be  almost  certain  to  act 
fairly,  because  naturally  it  would  care  more  for  the  rights 
of  society  than  for  the  interests  of  a  few,  for  where  men 
are  not  personally  or  directly  interested  in  an  issue  they 
are  always  ready  to  stand  for  that  which  is  for  the  wel- 
fare of  society. 

All  the  varied  plans  so  far  proposed  for  adjusting 
serious  labor  troubles  by  arbitration  are  encumbered  by 
the  necessity  of  legislative  enactments.  Compulsory 
arbitration  is  not  a  question  of  practical  reform  and 
therefore  is  foredoomed.  State  boards  of  arbitration 
have  an  inherent  fault,  which  has  weakened  and  must 
ever  weaken  their  influence,  making  their  useful  offices 
unavailable  often  for  both  capital  and  labor.  Voluntary 
arbitration  provided  for  under  such  a  system  as  I  have 
described  seems  fairer  and  simpler  and  acts  quicker. 
Besides,  the  aid  of  the  government,  either  State  or 
National,  should  never  be  invoked  save  in  an  extremity, 
all  differences  and  disputes  between  individuals  or 
classes  being  left  for  adjustment  as  nearly  as  possible  at 
their  source — for  differences  between  employers  and  em- 
ployees are  in  many  respects  to  be  regarded  as  merely 
family  differences,  and  should  be  and  can  be  better 
settled  within  the  immediate  industrial  family  than 
before  a  political  board  of  arbitration. 


212  INDUSTRIAL   CONCILIATION. 

We  are  nearing  the  close  of  a  century.  If  this  Con- 
ference should  offer  something  wise,  practical, beneficent, 
to  the  American  people — something  that  will  make  for 
peace  and  honor — the  last  days  of  that  century  will  be 
its  best.  This  Conference,  therefore,  should  not  adjourn 
without  offering  to  the  public  some  simple,  practical 
plan  of  conciliation  and  arbitration,  accompanying  it 
with  an  appeal  to  those  great  teachers,  the  pulpit  and 
the  press,  to  inaugurate  the  new  century  with  a  spon- 
taneous effort  to  make  the  peaceful  solution  of  the  labor 
problem  in  our  free  land  the  subject  of  their  best  thought 
and  the  object  nearest  their  hearts,  underlying  as  it  does 
the  very  foundations,  not  only  of  our  government,  but  of 
society. 


ARBITRATION   AND  POLITICAL  ACTION. 

BY    FRANK    BUCHANAN,   PRESIDENT    OF    THE    BRIDGE    AND 
STRUCTURAL   IRON    WORKERS*    UNION    OF   CHICAGO. 

OF  course,  I  do  not  believe  that  all  this  strife  be- 
tween labor  and  capital  can  be  settled  by  arbitra- 
tion, first,  because  human  nature  on  both  sides  is  full  of 
imperfections,  and  second,  there  is  the  question  of 
monopoly  running  all  through  our  industrial  system,  re- 
quiring in  my  judgment  political  and  legislative  action. 

The  well  organized  trade  union  can  arbitrate  with 
the  employers  all  questions  in  dispute  between  them. 
It  can  reduce  the  hours  of  labor,  establish  a  Satur- 
day half-holiday,  charge  extra  pay  for  overtime, 
prohibit  the  employment  of  children  of  tender  years, 
regulate  the  number  of  apprentices,  insist  on  payment 
in  money  instead  of  truck,  and  enforce  respectful  treat- 
ment for  its  members  while  at  work. 

As  a  trade  union,  it  can  agree  to  submit  to  arbitration 
the  disputes  growing  out  of  any  and  all  such  questions. 
But  arbitration  cannot  get  rid  of  government  by  injunc- 
tion, abolish  the  monopoly  of  land,  money,  or  transpor- 
tation, reform  the  tax  system,  or  regulate  franchises  of 
public  utilities.  Yet  these  are  all  in  the  broader  sense  a 
part  of  the  labor  question. 

The  union,  in  order  to  be  successful  in  any  of  its 
undertakings,  must  organize  all  or  nearly  all  persons 

213 


214  INDUSTRIAL   CONCILIATION. 

working  at  a  given  trade.  To  do  this,  it  must  allow  the 
largest  liberty  of  private  judgment  on  all  matters  politi- 
cal. To  run  against  any  of  the  deep-seated  prejudices 
of  its  members,  either  religious  or  political,  would  at 
once  sow  the  seeds  of  discord  and  result  either  in 
breaking  up  the  organization  or  in  reducing  its  member- 
ship to  such  a  small  number  that  it  could  not  enforce 
any  of  its  demands. 

For  this  reason,  whatever  political  action  the  unions 
wish  to  take  must  be  taken  in  a  non-partisan  way. 
Unions  can  bring  pressure  to  bear  on  a  legislative  body 
either  to  enact  this  law  or  to  repeal  that,  but  they  cannot 
insist  on  their  members  either  opposing  or  supporting 
this  or  that  party  without  inviting  disastrous  results. 

The  union  I  represent  is  one  of  the  most  powerful  in 
our  city.  Its  members  must  be  strong  and  active. 
Their  work  is  always  associated  with  great  danger.  My 
experience  as  its  business  agent  has  been  that  much 
more  good  can  be  accomplished  for  our  membership  by 
being  diplomatic,  by  faithfully  carrying  out  our  part  of 
an  agreement,  than  by  swagger  and  bluster.  But  no 
matter  how  hard  a  business  agent  may  work  to  avoid 
trouble,  he  gets  very  little  credit.  He  is  wedged  in  be- 
tween a  large  body  of  men  on  one  side,  chafing  under 
real  or  imaginary  wrongs,  and  not  over- particular  at 
times  about  keeping  an  agreement;  on  the  other  side, 
he  is  constantly  confronted  by  a  sharp  class  of  contrac- 
tors who  are  ever  ready  to  profit  by  any  advantage  that 
they  can  gain  in  secretly  undercutting  wages,  and  in  many 
ways  violating  the  letter  and  spirit  of  their  agreement 
with  organized  labor. 

While  I  do  not  wish  to  defend  everything  that  has  been 
done  by  the  Building  Trades  of  Chicago,  I  insist  that 


INDUSTRIAL   CONCILIATION.  21$ 

their  mistakes  were  magnified  and  they  were  blamed  for 
much  which  the  contractors  themselves  were  responsible 
for.  Take,  for  instance,  the  limitation  of  a  day's  work 
by  the  plumbers'  union,  about  which  there  has  been  so 
much  complaint.  This  I  am  sure  the  union  would  not 
have  done  had  it  not  been  suggested  and  agitated  by 
some  of  the  bosses. 

Arbitration  in  the  building  trades  received  its  first 
great  impetus  in  Chicago  some  seventeen  years  ago  when 
the  long  strike  of  the  bricklayers  was  adjusted  with 
Judge  Murry  F.  Tuley  as  the  independent  arbitrator. 
Since  then,  the  building  trades  have  all  adopted  rules 
for  arbitrating  trade  disputes.  The  boards  created  by 
these  rules  are  composed  of  an  equal  number  of  the  mem- 
bers of  the  union  and  the  boss  contractors,  who  only 
call  in  an  independent  party  when  they  cannot  agree. 
This  has  been  the  only  kind  of  arbitration  which  the 
building  trades  have  resorted  to.  I  do  not  know  of  a 
single  instance  where  any  of  the  building  trades  have 
ever  called  upon  the  State  Board  of  Arbitration.  In- 
deed, the  instances  are  rare  of  any  trade  in  Chicago  call- 
ing on  the  State  Board.  This  is  perhaps  due,  first,  to  the 
suspicion  widely  entertained  that  boards  of  arbitration 
appointed  and  representing  a  political  administration 
have  purposes  to  serve  other  than  that  of  fair  play 
between  employers  and  employees;  second,  because 
members  of  such  boards  are  usually  strangers  to  the  re- 
quirements of  the  trades  in  dispute  and  therefore  can- 
not exercise  the  sound  judgment  in  reaching  a  decision 
to  be  had  by  a  board  composed  of  persons  connected 
with  the  trades. 

I  have  often  thought  that  compulsory  arbitration  en- 
forced by  the  State  would  be  a  good  thing,  and  yet  I  find 


2l6  INDUSTRIAL   CONCILIATION. 

few  men  in  the  labor  movement  favorable  to  it.  Why 
this  is  so,  I  cannot  say,  unless  it  is  because  the  working 
men  believe  that  the  courts  and  the  various  boards 
created  by  the  State  are  generally  on  the  side  of  capital, 
and  therefore  they  are  afraid  to  have  their  interests 
adjusted  by  them. 

But  it  seems  to  me  that  contracts  could  be  entered 
into  for  a  definite  period  of  time  between  the  unions 
and  the  employers  setting  forth  all  the  conditions  to  be 
observed  during  the  life  of  the  contract,  and  that  the 
violation  of  such  agreement  by  either  party  would  be  as 
much  a  matter  of  judicial  inquiry  and  adjustment  as  that 
of  any  other  contract  between  our  citizens  in  their  busi- 
ness relations.  If  not,  why  not  ? 


CONFERENCES  AND  AGREEMENTS  OF  RAIL- 
WAY CONDUCTORS. 

BY    E.    E.    CLARK,    GRAND    CHIEF    CONDUCTOR,   ORDER   OF 
RAILWAY    CONDUCTORS   OF    AMERICA. 

IT  is  the  disposition  of  the  employer  to  secure  the  ser- 
vices of  employees  at  rates  of  compensation  and  un- 
der conditions  of  employment  least  expensive  to  the 
employer.  It  is  the  disposition  of  the  employee  to  secure 
the  highest  compensation  and  the  most  favorable  con- 
ditions possible.  Out  of  these  natural,  and  naturally 
conflicting,  desires  grows  the  situation  which  is  termed 
the  conflict  between  capital  and  labor,  and  which  is 
sometimes  spoken  of  as  an  irrepressible  conflict. 

The  desires  mentioned  are  a  part  of  human  nature 
and  an  effort  to  secure  those  desires  is  in  accord  with 
the  first  law  of  nature.  In  years  gone  by,  the  employer 
has  been  disposed  to  say:  "You  are  my  servant.  I  am 
master.  If  you  do  not  like  the  conditions  and  the  com- 
pensation fixed  and  granted  by  me,  you  are  at  liberty  to 
seek  employment  elsewhere."  The  employee  said  in 
turn:  "We  must  have  more  pay  or  certain  changed  con- 
ditions of  labor."  Possibly  the  views  of  the  situation 
from  the  employees'  standpoint  were  ex parte,  and  pos- 
sibly their  demands  exceeded  the  limits  of  justice  and 
reason.  The  employer  was  wont  to  answer  the  demand 
with  a  flat  refusal,  and  thus  the  two  interests  became 

217 


21 8  INDUSTRIAL   CONCILIATION. 

arrayed  against  each  other  diametrically,  and,  instead  of 
coming  together  to  reason  the  subject  to  a  logical  con- 
clusion, each  would  seek  to  entrench  himself  in  a 
position  which  promised  advantage  and  gave  hope  of 
ultimate  success. 

If  the  employer  and  his  employees,  one  represented 
by  the  officers  in  charge,  the  other  by  the  committee, 
and,  if  necessary,  the  officers  of  the  organization,  would 
draw  closely  together  and  sit  down  in  a  friendly,  dis- 
passionate, and  considerate  way  to  discuss  the  situation, 
in  nine  cases  out  of  every  ten  they  would  reach  a  com- 
mon understanding  acceptable  to  both.  Each  must 
learn  to  respect  the  rights  and  feelings  of  the  other. 

Employees  are  naturally  much  better  satisfied  and 
much  more  content  working  under  conditions  which 
they  have  had  a  voice  in  fixing  than  under  those  arbi- 
trarily imposed  by  the  employer  and  probably  not 
properly  understood  by  the  employees. 

Organization  on  the  part  of  both  employer  and  em- 
ployee should  be  as  perfect  as  possible.  Each  should 
be  dominated  by  a  desire  to  be  fair  and  to  do  right.  If 
such  organization  existed,  the  arbitrarily  disposed  and 
hot-headed  employer  who  resents  the  idea  of  his  em- 
ployee presuming  to  question  the  conditions  fixed  by  him 
in  the  conduct  of  his  own  business  and  in  his  own  way, 
would,  by  virtue  of  being  controlled  by  the  regulations 
of  the  employers'  organization  of  which  he  was  a  mem- 
ber, or  by  the  more  calm  and  cooler  judgment  of  the 
lawfully  constituted  majority  within  such  an  organiza- 
tion, be  restrained  from  precipitating  trouble  which, 
when  it  was  over,  could,  by  careful  analysis,  be  shown 
to  have  no  real  cause  other  than  a  foolish  or  unreason- 
able determination  to  uphold  personal  or  official  dignity. 


INDUSTRIAL   CONCILIATION.  21$ 

It  is  not  to  be  wondered  at  that,  in  connection  with 
the  determination  of  the  employee  to  have  a  voice  in 
fixing  the  conditions  under  which  he  is  to  labor,  his 
efforts  to  assert  and  maintain  that  right,  and  the  disposi- 
tion of  the  employer  to  deny  and  withhold  that  right, 
some  serious  friction  is  created  and  some  serious  con- 
flicts occur.  These  have  been  undoubtedly  necessary 
to  the  working  out  of  this  problem,  however  regrettable 
their  occurrence  may  have  been.  New  lessons  have 
been  learned  from  every  instance  of  that  kind.  The 
conditions  are  growing  better  year  by  year.  Employers, 
partially  from  a  desire  to  be  fair  and  considerate  with 
their  employees,  and  partially  because  the  conviction 
that  it  is  to  be  so  has  been  forced  upon  them,  are  show- 
ing a  willingness  to  concede  to  their  employees  the  right 
to  a  voice  in  fixing  mutually  acceptable  conditions  of 
employment.  Employees  are  realizing  more  and  more 
the  responsibilities  resting  upon  them  and  the  necessity 
for  their  being  just  and  fair  with  their  employers,  as  well 
as  considerate  of  the  rights  of  others,  which  must  always 
be  involved,  to  some  degree,  in  a  serious  conflict  be- 
tween an  employer  and  any  large  number  of  employees. 
Employees  are  realizing  more  and  more  that  a  mere  test 
of  strength  does  not  really  settle  any  vital  principle,  and 
that  the  defeated  one,  instead  of  being  convinced,  simply 
submits  through  force  of  circumstances  and  bides  his 
time,  consoling  himself  with  the  knowledge  that  he  has 
inflicted  sore  injury  upon  his  opponent  and  with  the 
hope  that  some  time  his  day  will  come. 

The  practice  of  employer  and  employee  meeting  on 
even  terms,  and  in  a  friendly  and  conciliatory  spirit, 
for  the  purpose  of  intelligent  and  frank  discussion  of 
these  matters  is,  therefore,  the  rational,  reasonable,  and 


220  INDUSTRIAL   CONCILIATION. 

civilized  way  of  meeting  this  question.  If  that  way  be 
adopted,  the  next  and  natural  step  is  a  friendly  agree- 
ment to  submit  to  arbitration  such  disputed  points  as  the 
principals  are  unable  to  reach  an  agreement  upon.  If 
the  proper  spirit  is  entertained  at  the  start  and  exercised 
during  the  discussions,  there  can  be  no  fear  of  anything 
occurring  to  seriously  mar  the  pleasant  relations  or  to 
prevent  the  matter  being  carried  to  the  logical  conclu- 
sion of  negotiations  carried  on  in  that  spirit, — arbitration. 
If  each  knows  at  the  outset  that  such  points  as  cannot 
be  agreed  upon  are  to  be  submitted  to  arbitration,  they 
will  be  much  less  liable  to  assume  or  maintain  any  posi- 
tion which  their  conscience  and  better  judgment  tells 
them  is  wrong  or  untenable.  Simple  fair-mindedness  as 
between  man  and  man  will  be  the  basis  of  the  negotia- 
tions and  the  foundation  stone  of  the  conclusion  finally 
reached. 

I  know  that  much  has  been  said  on  the  subject  of  com- 
pulsory arbitration.  My  idea  of  the  principle  of  arbitra- 
tion is  the  friendly  submission  of  disputed  points  between 
two  or  more  parties  to  an  outside  party,  in  the  selection 
of  whom  the  disputants  have  equal  voice  and  whose  de- 
cision it  is  agreed  in  advance  shall  be  final  and  conclusive. 
In  order  to  have  arbitration  in  the  sense  that  I  see  it,  each 
disputant  must  feel  confident  that  his  interests  are  going 
to  receive  the  same  consideration  that  is  shown  to  those 
of  his  opponent,  and  must  have  an  abiding  faith  that 
the  award  will  be  rendered  in  a  spirit  of  perfect  fairness. 
It  does  not  seem  that  these  feelings  or  convictions  could 
be  entertained  under  compulsion,  and  it  is  also  difficult 
to  see  how  employees  in  this  country  could  be  compelled 
to  submit  their  differences  with  their  employers  to  arbi- 
tration and  be  forced  to  continue  in  employment  pending 


INDUSTRIAL   CONCILIATION.  221 

the  finding  of  an  award  without  seriously  conflicting  with 
the  provisions  of  the  Thirteenth  Amendment  to  the  Con- 
stitution of  the  United  States. 

Much  has  been  said  and  written  on  the  subject  of  the 
power  of  legislators  and  of  the  courts  in  this  direction. 
In  my  judgment,  an  effort  on  the  part  of  legislators  or 
courts  to  compel  arbitration  would  result  in  more  harm 
than  good  and  in  ultimate  failure.  There  is  in  this  land 
an  influence  more  potent  than  that  of  the  legislator  and 
a  court  higher  than  those  established  by  legislative 
enactment.  That  influence  and  that  court  are  public 
opinion.  When  public  sentiment  generally  demands 
the  enactment  or  the  enforcement  of  a  law,  the  law  will 
be  enacted  and  will  be  enforced.  When  public  senti- 
ment generally  is  against  any  law  that  is  on  the  statute 
books,  that  law  will  surely  become  a  dead  letter  and  any 
effort  to  enforce  it  will  result  in  its  being  repealed. 

I  am  an  optimist  on  this  subject.  I  believe  that  the 
principle  of  arbitration  as  a  means  of  settlement  of  in- 
dustrial disputes  is  gaining  ground  just  as  surely  as  west- 
ern-hemisphere civilization  is  making  progress.  I  believe 
that  the  convictions  of  those  most  directly  interested  in 
industrial  disputes  are  influenced  very  largely  by  the 
opinions  and  sentiments  of  the  great  public.  I  have  an 
abiding  faith  in  the  good  judgment  and  the  fair-minded- 
ness of  the  large  majority  of  the  people.  I  believe  that 
the  judgment  of  the  large  majority  will  be  invariably 
right  if  they  properly  understand  the  question.  I  be- 
lieve that  meetings  such  as  this  one  are  steps  in  the  right 
direction.  They  will  have  a  more  far-reaching  effect 
than  is  now  appreciated  and  will  do  more  good  than  the 
promoters  of  the  plan  have  dared  to  hope.  Public 
opinion  is  educated  and  influenced  and  moulded  by  just 


222  INDUSTRIAL   CONCILIATION. 

such  meetings  as  these.  No  better  evidence  of  the  fact 
that  the  principle  of  arbitration  is  rapidly  gaining  ground 
need  be  desired  than  the  spectacle  here  presented  of 
men  fully  representative  of  the  employing  classes  and 
of  the  employed  meeting  with  one  common  purpose  to 
discuss  the  subject,  while  each  entertains  the  highest 
respect  and  the  greatest  toleration  for  the  views  of  the 
other. 

The  Order  of  Railway  Conductors,  which  organization 
I  have  the  honor  to  represent,  has  pronounced  emphati- 
cally in  favor  of  arbitration  in  industrial  disputes.  The 
organization  has  a  protective  policy  and  under  certain 
justifiable  conditions  would  not  hesitate  to  endorse  a 
strike,  but  it  will  not  resort  to  that  extreme  except  in 
defence  of  simple  right  or  of  a  principle  and  then  only 
as  a  last  resort  and  after  it  has  been  found  impossible  to 
secure  an  agreement  to  arbitrate  the  differences.  The 
order  has  heartily  co-operated  with  the  other  organiza- 
tions of  railroad  employees  in  the  operating  department 
by  encouraging  in  every  possible  way  a  disposition  to 
adopt  arbitration  as  a  policy  and  in  an  endeavor  to  pro- 
vide means  for  extending  the  application  of  this  principle 
in  so  far  as  has  been  in  our  power.  We  have  submitted 
a  good  many  cases  and  disputed  points  to  arbitration, 
and  our  experience  has  been  such  as  to  commend  the 
employment  of  that  agency  in  settling  such  disputes. 


THE  INDIANA  LABOR  LAW. 

BY    HON.    R.    S.    TAYLOR,  OF    FORT    WAYNE. 

(HAVE  thought  that  as  useful  a  contribution  as  I 
could  make  to  the  deliberations  of  this  conference 
would  be  a  short  presentation  of  the  principles  of  the 
Indiana  Labor  Law,  enacted  in  1897,  with  some  account 
of  its  working.  The  law  provides  for  the  appointment 
by  the  Governor,  with  the  advice  and  consent  of  the 
Senate,  of  two  labor  commissioners — one  from  the  em- 
ploying interest  and  the  other  from  the  labor  interest, 
not  less  than  forty  years  old  and  not  of  the  same  political 
party.  It  is  the  duty  of  these  commissioners,  upon  re- 
ceiving information  of  any  strike,  lockout,  boycott,  or 
other  labor  complication  in  the  State  affecting  the  em- 
ployment of  fifty  persons  or  more,  to  go  at  once  to  the 
place  and  exert  themselves  (i)  to  adjust  the  controversy 
by  conciliation;  (2)  if  that  effort  should  be  ineffectual, 
to  endeavor  to  induce  the  parties  to  submit  their  differ- 
ences to  arbitration;  and  (3)  if  that  should  be  unsuc- 
cessful, after  a  lapse  of  five  days,  to  investigate  the  facts 
with  or  without  the  consent  of  the  parties.  For  arbitra- 
tion, the  law  provides  a  board  consisting  of  the  two  labor 
commissioners  and  the  circuit  judge  within  whose  circuit 
the  controversy  is  located.  To  these  the  parties  may, 
if  they  choose,  add  an  additional  arbitrator  each,  mak- 
ing in  that  case  five  in  all.  The  judge  is  the  president 

223 


224  INDUSTRIAL   CONCILIATION. 

of  the  board  and  the  proceedings  are  conducted  ac- 
cording to  the  rules  of  civil  trials.  The  finding  of  the 
board  is  spread  on  the  record  of  the  circuit  court  and 
has  the  effect  of  a  judicial  order.  Upon  complaint  of 
either  party  that  the  other  is  not  obeying  the  order,  a 
rule  to  show  cause  is  issued  by  the  court,  upon  which 
proceedings  are  had  as  in  other  orders  in  personam. 
These  provisions  invest  the  board  with  full  judicial 
authority  and  vest  in  the  court  power  to  compel  obedi- 
ence to  the  award  in  any  suitable  manner. 

The  provision  for  compulsory  investigation  is  the  par- 
ticularly novel  feature  of  the  statute.  In  conducting 
that  investigation  the  labor  commissioners  are  authorized 
to  compel  the  attendance  of  witnesses  and  the  produc- 
tion of  books  and  papers.  At  the  conclusion  of  their 
investigation,  they  make  a  report  to  the  Governor  of  the 
facts  found  by  them,  which  he  is  at  liberty  to  send  to 
the  press  for  publication.  There  the  compulsory  inter- 
ference of  the  law  ceases.  The  arbitration  provided  for 
is  entirely  voluntary.  After  all  efforts  have  been  ex- 
hausted to  induce  the  parties  to  accommodate  their 
differences  or  arbitrate  them,  the  investigation  and 
report  by  the  commissioners  simply  give  to  the  public 
the  facts  as  ascertained  by  an  impartial  judicial  inquiry. 

The  statute  has  been  highly  successful  in  its  opera- 
tion. Fortunately  for  the  people,  the  gentlemen  ap- 
pointed to  serve  under  it  have  proved  to  be  judicious 
and  skilful  diplomats,  earnestly  devoted  to  their  work, 
and  have  deservedly  enjoyed  a  high  degree  of  confidence 
at  the  hands  of  both  employers  and  employees.  The 
first  official  report  by  the  commission  shows  that  during 
the  eighteen  months  covered  by  the  report  the  commis- 
sioners tendered  their  services  in  thirty-nine  strikes  and 


INDUSTRIAL   CONCILIATION.  22$ 

lockouts.  Of  these  there  was  a  failure  to  adjust  the 
differences  between  the  parties  in  only  seven  instances, 
and  in  two  of  these  the  contestants  on  one  side  were 
non-residents  of  the  State.  In  twenty-eight  contests 
satisfactory  agreements  were  reached  through  the  media- 
tion of  the  commission,  and  in  nineteen  of  these  settle- 
ments the  working  men  secured  either  an  advance  in 
wages  or  other  improved  conditions.  In  addition  to  this 
the  commission  prevented  strikes  in  five  instances  by 
timely  negotiations  and  was  instrumental  in  having  two 
boycotts  declared  off.  The  total  number  of  employees 
involved  in  these  controversies  was  approximately  13,815. 
The  report  of  the  labor  commission  for  1899  and  1900 
has  not  yet  been  issued.  By  the  courtesy  of  the  com- 
missioners I  have  been  permitted  to  see  a  portion  of  it 
in  advance  of  its  presentation.  It  shows  a  still  greater 
success  in  dealing  with  labor  complications  than  was 
achieved  during  the  preceding  eighteen  months.  The 
number  of  strikes  dealt  with  has  been  a  little  greater, 
eleven  more,  but  they  have  been  less  extensive  and  less 
stubborn  and  less  long  continued.  The  average  dura- 
tion of  strikes  covered  by  the  first  report  was  a  fraction 
less  than  thirty  days;  during  the  latter  period,  less  than 
half  that  number  of  days.  Altogether,  the  greatest  good 
accomplished  by  the  commissioners  has  been  in  the  way 
of  conciliation.  It  being  their  duty  under  the  law  to 
interpose  at  once  upon  the  appearance  of  any  contro- 
versy, they  are  able  thus  to  get  the  parties  together 
before  a  prolonged  struggle  has  embittered  them  toward 
each  other.  The  commissioners  state  that  they  find  this 
to  be  the  most  difficult  part  of  their  work.  Once  they 
persuade  the  parties  to  come  together  and  talk  over  their 

difficulty,  they  rarely  fail  in  securing  an  adjustment. 
15 


226  INDUSTRIAL   CONCILIATION. 

There  has  been  very  little  occasion  to  make  use  of 
the  provisions  of  the  law  for  arbitration  or  compulsory 
investigation.  But  it  is  my  opinion  that  the  success  of 
the  commissioners  in  accommodating  differences  is 
largely  due  to  the  fact  of  the  presence  of  these  pro- 
visions in  the  law.  The  commissioners  have  powers  of 
legal  compulsion — not  to  compel  an  arbitration,  but  to 
compel  a  full  disclosure  of  all  the  facts  by  each  party. 
I  believe  that  that  fact  secures  for  the  commissioners  a 
degree  of  consideration  and  influence  which  they  would 
not  otherwise  have. 

In  their  forthcoming  report  the  commissioners  will 
recommend  some  legislation  providing  some  form  or 
kind  of  compulsory  arbitration  in  cases  where  the  pub- 
lic are  greatly  inconvenienced  by  a  strike  or  lockout. 
The  details  of  their  recommendation  are  still  under 
consideration. 


THE   MASSACHUSETTS  STATE  BOARD   OF 
MEDIATION  AND  ARBITRATION. 

BY    W.    O.    REED,    PRESIDENT    OF    THE    BOARD. 

THE  presence  of  this  company,  representing  so  many 
conflicting  interests,  is  satisfactory  evidence  that 
the  fundamental  doctrine  upon  which  our  Board  pro- 
ceeds, that  the  overwhelming  majority  of  the  participants 
in  the  struggle  want  only  what  is  fair,  is  correct. 

Notwithstanding  the  apparently  inexplicable  attitudes 
at  times  assumed,  it  is  reasonably  clear  that  the  goal  for 
which  they  are  striving  is  fairness  to  all.  No  doubt 
there  is  a  remnant  among  them  who  are  actuated  by  a 
different  motive.  Certainly  there  are  men  who  have  no 
instinct  of  fairness  in  their  natures.  But  they  are  noth- 
ing compared  with  the  great  world  and  may  be  omitted 
from  our  calculation.  It  is  still  true  that  deep  in  the 
hearts  of  mankind,  controlling  their  actions,  shaping 
their  lives,  is  a  conviction  that  one  must  be  contented 
with  what  is  fair.  Confidence  in  the  truth  of  this  propo- 
sition is  the  principal  thing  that  we  carry  with  us  when 
our  Board  goes  out  into  the  arena  where  men  are  striv- 
ing together.  I  do  not  mean  simply  that  men  will  be 
contented  with  what  they  think  is  fair.  They  have  pro- 
gressed farther  than  that.  They  have  no  stomach  for 
contest  after  they  have  obtained  what  fairness,  based  on 
general  opinion,  calls  for. 

227 


228  INDUSTRIAL   CONCILIATION. 

Whoever  would  step  between  the  disputants  as  me- 
diator must  approach  his  duty  with  the  conviction  that 
each  will  be  satisfied  with  the  fair  thing.  He  must  pro- 
foundly believe  it.  Even  the  most  settled  conviction 
that  men  only  want  what  is  fair  is  liable  to  shipwreck 
when  one  comes  into  the  presence  of  the  angry  battle 
for  supremacy,  where  each  is  endeavoring  to  destroy  the 
other  by  any  means  within  his  power.  Then  men  seem 
to  strive  only  for  victory  and  to  plan  the  blow  which  will 
cripple  the  adversary,  if  not  destroy  him. 

While  there  is  a  certain  rough  equity  in  our  natures,  it 
is  also  true  that  all  life  is  made  up  of  contest.  Our  lives 
are  a  struggle  against  forces  which  oppose  us,  and  which 
we  are  endeavoring  continually  to  overcome.  This  holds 
in  the  industrial  world  as  in  every  other  department  of 
life.  When  one  feels  that  he  has  come  up  against  an 
opposing  force,  he  instinctively  pushes  ahead  to  meet 
and  overcome  the  difficulty.  If  it  is  a  matter  of  dispute 
between  employer  and  employee,  his  attitude  in  no  way 
differs  from  that  toward  obstacles  of  the  various  other 
sorts  that  it  is  his  daily  lot  to  meet.  He  summons  his 
forces  to  put  aside  the  difficulty  or  surmount  the  ob- 
stacle. He  clears  decks  for  battle.  He  feels  that  he 
must  rely  on  his  own  right  arm.  He  resolves  to  trust 
himself.  Then,  more  than  at  any  other  time,  his  nature 
abhors  the  thought  of  allowing  the  matter  to  pass  beyond 
his  control  by  submitting  it  to  an  outsider.  He  proposes 
to  win.  He  has  nothing  to  arbitrate. 

This  is  human  nature  in  the  presence  of  difficulties, 
industrial  as  well  as  any  other.  We  harden  ourselves  for 
the  struggle. 

Now  arbitration,  or  the  submission  of  controversies  to 
a  third  party,  does  not  look  to  a  change  of  human  na- 


INDUSTRIAL   CONCILIATION.  2  29 

ture,  or  expect  that  the  struggle  of  life  will  be  either 
softened  or  abrogated  as  to  industrial  troubles.  Its  ad- 
vocate does  not  expect  that  men  preparing  for  a  struggle 
will  suddenly  and  without  reason  drop  their  differences 
in  the  lap  of  the  arbitrator.  But  it  does  rely  on  the 
knowledge  that  all  men  when  they  begin  a  controversy 
weigh  the  power  of  their  opponent,  and  if  they  find  them- 
selves matched,  or  likely  to  be  worsted,  will  listen  to  the 
advice  of  the  Duke  in  Shakespeare's  play:  "  Let  your 
reason  with  your  choler  question  what  it  is  you  go 
about." 

To  run  one's  hand  over  the  muscles  of  an  opponent 
often  has  a  peaceful  effect  and  tends  to  allay  the  bellige- 
rent feeling.  Arbitration  will  be  a  substitute  for  war 
when  each  has  a  wholesome  respect  for  the  fighting  power 
of  the  other,  and  when  each  can  see  that  defeat  and 
rout  are  about  as  likely  to  come  as  victory.  If  a  man 
is  reasonably  sure,  however,  of  obtaining  his  end  without 
loss  to  himself,  he  will  have  nothing  to  arbitrate. 

We  did  not  arbitrate  the  Alabama  claims  with  England 
because  of  any  particular  regard  that  we  held  for  her. 
The  feeling  here  was  rather  that  of  intense  indignation. 
England  was  inclined  to  scorn  our  claim,  but  willing  to 
arbitrate  because  she  knew  that  she  would  get  hurt  if  she 
did  not  do  so.  Each  knew  that  the  other  was  a  power- 
ful nation  and  would  deliver  a  heavy  blow.  We  find  the 
same  thing  to-day.  It  is  the  battle-scarred  union  that  is 
willing  to  submit  its  differences.  It  is  the  veteran  em- 
ployer, not  necessarily  in  years,  but  in  experience  in 
labor  difficulties,  who  is  willing  to  let  the  points  in  issue 
pass  under  the  judgment  of  an  impartial  tribunal. 

Unorganized  labor,  the  new  union,  the  employer  who 
though  old  in  years  first  meets  a  labor  trouble,  and  who 


230  INDUSTRIAL   CONCILIATION. 

has  not  learned  that  "war  is  hell,"  such  do  not  need  ar- 
bitration. They  believe  that  they  can  win  out  and  are 
quite  sure  to  have  nothing  to  arbitrate.  In  proportion 
as  the  contestants  learn  to  respect  the  ability  of  the  op- 
ponent to  inflict  injury,  and  appreciate  that  victories  are 
expensive,  they  will  be  willing  to  arbitrate,  provided  of 
course  they  have  confidence  in  the  tribunal  proposed. 

We  have  no  issue  with  those  who  believe  that  the 
world  is  growing  better.  The  most  beautiful  thing  in 
life  to-day  is  the  developed  appreciation  of  the  doctrine 
that  it  is  better  to  give  than  to  receive.  Undoubtedly 
also  the  Golden  Rule  is  the  principle  of  action  of  the 
lives  of  more  men  and  women  to-day  than  ever  before; 
but  the  arbitrator  in  his  walks  does  not  meet  those  peo- 
ple often.  As  we  see  it,  life  is  a  struggle  for  supremacy. 

Before  I  speak  of  the  methods  pursued  by  our  Board 
I  wish  to  call  attention  to  the  different  uses  of  the  term 
"arbitration"  now  in  vogue.  Although  the  difference 
between  arbitration  and  conciliation  is  carefully  observed 
in  the  act  of  the  Legislature  creating  the  Board,  still  in 
the  popular  mind  the  two  are  often  confounded.  While 
the  word  really  means  a  submission  by  the  parties  to  a 
controversy  to  a  third  party  for  a  decision,  it  has  come 
to  mean  in  a  popular  way  any  substitute  for  open  war- 
fare. It  not  only  includes,  in  the  minds  of  many,  me- 
diation and  conciliation  by  a  third  party,  where  there  is 
no  submission  to  his  decision,  but  it  is  also  made  to  in- 
clude negotiation  by  the  parties  themselves  without  the 
assistance  of  a  mediator  where  they  confer  together  be- 
fore open  hostilities  are  commenced.  The  grievance 
committee  of  the  union  is  often  spoken  of  as  an  arbitra- 
tion committee,  whose  duties  are  to  meet  a  committee 
from  the  other  side  before  ordering  a  strike.  The  work 


INDUSTRIAL   CONCILIATION.  23! 

of  the  arbitration  committee  is  often  considered  complete 
when  it  reports  back  to  the  union  its  inability  to  settle 
with  the  employer,  and  a  strike  is  often  ordered  there- 
upon without  any  further  attempt  at  arbitration.  I  am 
inclined  to  think  that  it  is  in  this  sense  of  the  word  that 
many  unions  understand  their  provision  that  they  are 
favorable  to  arbitration  and  that  many  of  the  younger 
unions  would  be  loth  to  submit  their  grievance  to  arbi- 
tration, properly  so  called,  after  an  ineffectual  negotiation 
with  the  employer. 

It  is  true,  however,  I  think  that  the  older  and  stronger 
unions  understand  the  word  in  its  true  meaning  and  are 
committed  to  its  support. 

Under  our  law,  arbitration  is  purely  voluntary  and  is 
possible  only  while  the  relation  of  employer  and  employee 
is  unbroken  and  the  men  are  at  work.  The  State  does 
not  provide  for  a  submission  when  a  strike  or  lockout 
exists.  If  one  has  taken  place,  the  men  must  go  back  to 
work  before  arbitration  can  be  entered  upon. 

In  cases  of  pure  arbitration,  we  have  the  following 
provision  as  to  expert  assistants: 

"  Each  of  the  parties  to  the  controversy,  the  employer  on  the  one 
side,  and  the  employees  interested  on  the  other  side,  may  in  writing 
nominate,  and  the  board  may  appoint,  one  person  to  act  in  the  case 
as  expert  assistant  to  the  board.  The  two  persons  so  appointed 
shall  be  skilled  in  and  conversant  with  the  business  or  trade  con- 
cerning which  the  dispute  has  arisen.  It  shall  be  their  duty,  under 
the  direction  of  the  board,  to  obtain  and  report  to  the  board  infor- 
mation concerning  the  wages  paid  and  the  methods  and  grades  of 
work  prevailing  in  manufacturing  establishments  within  the  Common- 
wealth of  a  character  similar  to  that  in  which  the  matters  in  dispute 
have  arisen." 

In  the  great  majority  of  cases  arbitration  is  not  re- 
sorted to,  but  the  other  function  of  the  Bparcl  is  called 


INDUSTRIAL   CONCILIATION. 

in  play, — that  is,  conciliation,  which  is  an  endeavor  to 
obtain  a  conference  between  the  parties  for  the  purpose 
of  a  settlement  of  their  affairs  with  such  assistance  from 
the  Board  as  they  may  desire  or  it  thinks  best  to  render. 

Let  me  give  you  a  leaf  out  of  our  daily  life. 

A  newspaper  clipping  bureau  furnishes  us  each  day 
with  clippings  of  all  labor  difficulties  reported  in  the 
newspapers  in  the  State  during  the  preceding  day.  Each 
case  is  docketed  as  it  comes  in,  in  a  docket  which  has 
the  following  headings : 

City  or  Town;  Employer;  Nature  of  Business;  Date 
of  Strike  or  Lockout;  Cause;  Number  Out;  Union  In- 
volved; Result. 

At  each  meeting  of  the  Board,  unsettled  cases  are  dis- 
cussed in  their  order.  As  soon  as  a  case  of  any  impor- 
tance presents  itself,  we  visit  the  locality,  obtain  personal 
interviews  with  the  parties,  hear  their  stories,  and  offer 
suggestions  which  look  generally  to  a  conference  at  that 
time  or  later,  according  to  the  temper  of  the  parties. 

Personal  contact  with  each  of  the  parties,  patient,  un- 
ceasing endeavors  in  spite  of  all  obstacles  and  in  the  face 
of  discouraging  failures,  is  the  price  of  success  in  bring- 
ing the  parties  together.  After  the  first  suspicions  are 
allayed — suspicions  that  the  other  party  has  been  instru- 
mental in  bringing  the  Board  into  action — both  sides  uni- 
formly receive  us  with  courtesy  and  are  willing  to  give  us 
an  audience.  It  is  remarkable  to  what  a  degree  men  are 
softened  by  suggestions,  when  they  have  confidence  in 
the  fairness  of  the  maker  of  them.  In  many  cases,  when 
we  have  won  the  confidence  of  both  sides,  we  are  in  a 
position  to  weaken  the  animosities  and  bring  the  parties 
nearer  together.  Unless  some  question  of  principle,  real 
or  fancied,  intervenes,  they  will  come  quite  together. 


INDUSTRIAL   CONCILIATION.  233 

From  the  middle  of  last  September  to  the  first  of  the 
present  month,  a  period  of  about  ten  weeks,  our  docket 
has  shown  a  list  of  about  forty  labor  disturbances.  Ex- 
amination of  these  cases  showed  that  twenty-five  were 
trivial  and  settled  themselves  in  the  course  of  a  day  or 
two.  The  remaining  fifteen  were  of  sufficient  impor- 
tance to  call  for  action  by  the  Board.  In  each  case  the 
Board  visited  the  locality  and  had  interviews  with  the 
parties  from  one  to  ten  times.  During  this  period 
the  Board  has  travelled  to  meet  the  parties,  outside  of 
the  regular  office  travel,  twenty-five  hundred  miles. 
We  have  begun  work  as  early  as  six  o'clock  in  the  morn- 
ing and  often  finished  as  late  as  eleven  at  night.  All 
that  could  be  done  has  been  done  in  order  to  bring  the 
parties  together.  In  some  cases  the  men  have  gone  back 
to  work ;  in  others  it  was  a  trial  of  endurance,  neither 
party  yielded,  other  men  were  gradually  hired  in,  and 
the  contest  ended  by  a  complete  loss  to  the  employees. 
In  some  of  the  cases  this  process  is  still  going  on  and 
all  efforts  at  mediation  have  failed. 

Of  the  fifteen  cases  fourteen  have  been  cases  of  con- 
ciliation and  only  one  of  arbitration.  Almost  all  of  the 
time  of  the  Board  has  been  employed  about  cases  of  the 
former  class. 

One  department  of  the  work  of  the  Board  I  desire 
especially  to  mention  because  it  seems  to  us  the  most 
interesting.  We  endeavor  to  bring  about  between  em- 
ployer and  employee,  under  our  supervision,  trade  agree- 
ments which  settle  the  main  points  of  interest  to  them, 
and  which  contain  a  clause  binding  them,  in  case  they 
shall  be  unable  in  the  future  to  settle  their  differences 
amicably,  to  submit,  without  a  strike  or  lockout,  their 
differences  to  arbitration  by  the  State  Board,  or  a  local 


234  INDUSTRIAL   CONCILIATION. 

or  joint  board  if  they  prefer  it.  What  we  can  do  along 
these  lines  is  clear  gain,  and  lays  the  foundation,  before 
controversies  arise,  for  a  fair  and  equitable  disposition  of 
them.  Not  infrequently  our  rooms  present  the  pleasing 
picture  of  a  meeting  of  committees  of  associations  of 
employers  with  committees  of  the  employed,  or  their 
representatives,  who  are  honestly  and  earnestly  looking 
for  a  peaceful  solution  of  their  troubles.  We  are,  to- 
day, engaged  in  promoting  an  important  agreement  of 
this  sort  between  parties,  which,  if  consummated,  will  be 
a  distinct  advantage  to  the  public  as  well  as  to  the  parties 
themselves.  It  may  fail  utterly,  but  it  may  succeed. 

"To  climb  steep  hills,  requires  slow  pace  at  first," 
but  we  believe  that  we  have  begun  to  climb  the  hill  when 
we  have  induced  parties  to  agree  beforehand  to  waive 
the  battle  and  submit  to  the  decision  of  a  tribunal  of 
their  own  choosing.  We  notice  that  at  present  such 
trade  agreements  are  possible  only  where  both  sides  have 
had  their  fill  of  fighting.  It  will  be  long  before  such 
understandings  will  be  general,  but  we  believe  that  as 
time  goes  on  and  as  men  slowly  learn  that  even  the 
victor  suffers  greatly  in  industrial  warfare,  they  will  tend 
to  come  to  a  peaceful  agreement  to  avoid  the  struggle. 
More  hopeful  still  is  the  attitude  of  both  contestants 
when,  without  the  aid  of  the  Board,  they  enter  into  a 
compact  that,  without  a  strike  or  lockout,  they  will  sub- 
mit all  their  differences  to  the  State  Board,  or  to  a  local 
or  joint  board.  This  movement  is  meeting  with  con- 
siderable favor  among  some  of  our  manufacturers  and 
their  employees  in  Massachusetts,  and  as  far  as  we 
know  is  considered  by  them  as  a  solution  of  the  labor 
problem.  It  is  needless  to  say  that  we  foster  such 
arrangements. 


INDUSTRIAL   CONCILIATION.  23$ 

We  do  not  dread  the  increasing  power  of  both  sides 
and  their  increasing  ability  to  do  each  other  harm.  The 
probability  is  not  that  one  will  overcome  the  other,  but 
rather  that  each,  out  of  respect  for  the  strength  of  the 
other,  will  have  a  sufficient  regard  for  his  own  safety  to 
avoid  the  battle. 

In  a  certain  sense,  the  industrial  world  seems  to  be  in 
a  preparatory  stage  in  this  matter  and  to  be  busied  about 
certain  preliminary  questions.  When  these  have  been 
worked  out  the  field  for  arbitration  will  be  more  ap- 
parent. 

The  legal  right  of  men  to  combine,  though  long  dis- 
puted, is  now  freely  and  fully  admitted.  And  yet  very 
many  employees  have  the  same  feelings  of  hostility  to 
combinations  that  once  led  the  community  to  pass 
statutes  against  them.  Capital  is  turning  all  its  energies 
towards  production  and  only  gives  a  thought  to  the 
labor  question  when  brought  up  against  it.  It  is  often 
inclined  to  repress  organization  among  employees  and 
to  oppose  it  on  general  principles,  although  it  is  obliged 
to  concede  the  full  right  of  the  other  party  before  the 
law.  Time  will  bring  about  a  better  feeling  on  this  sub- 
ject, we  may  hope,  now  that  the  first  and  most  difficult 
step  has  been  taken.  At  the  present,  it  is  certain  that 
the  uncompromising  attitude  of  the  parties  on  this  issue 
of  organization  is  a  leading  cause  in  keeping  up  the  trials 
of  endurance  which  it  is  the  object  of  arbitration  to 
supplant. 

It  seems  not  unreasonable  to  expect  when  such  ques- 
tions as  these  have  dragged  their  slow  length  along,  and 
are  finally  disposed  of,  settled  forever,  that  mankind  will 
turn  from  the  trial  by  the  ordeal,  and  accept  a  more 
reasonable  settlement  in  industrial  quarrels  as  they  did  in 


236  INDUSTRIAL   CONCILIATION. 

the  thirteenth  century  in  the  other  quarrels  of  ordinary 
life.  It  is  a  long  time  since  the  Anglo-Saxon  settled  a 
question  of  the  title  to  a  piece  of  land  by  trial  by 
battle  or  duel  between  the  parties,  but  it  was  also  a  long 
time  before  the  jury  supplanted  this  barbarous  custom. 
One  may  read  in  Glanvill,  the  author  of  our  first  English 
law  treatise,  in  about  the  year  1200,  an  encomium  upon 
the  j ury  system,  which  was  then  displacing  the  duel :  "It 
[the  jury  system]  so  well  cares  for  the  life  and  condition 
of  men  that  every  one  may  keep  his  rightful  freehold  and 
yet  avoid  the  doubtful  chance  of  the  duel,  and  escape 
that  last  penalty,  an  unexpected  and  untimely  death." 

In  this  contest  the  question  of  what  is  a  fair  day's  pay 
is  often  settled  by  a  trial  by  ordeal,  so  to  speak,  to  see 
whether  the  man  or  the  machine  can  go  the  longer  with- 
out food,  and  the  process  is  about  as  satisfactory  as  the 
ancient  custom  was.  When  the  parties  appreciate  the 
danger  of  this  mode  of  settlement  of  honest  differences, 
they  will  look  more  sharply  than  at  present  for  a  substi- 
tute. In  the  meantime  it  is  the  office  of  boards,  by  ed- 
ucation, by  patient  endeavors,  by  conciliation,  and  by 
courting  the  confidence  of  both  sides,  to  prepare  the 
way.  As  for  us,  we  are  looking  steadfastly  to  the  future. 
We  have  "  hitched  our  wagon  to  a  star." 

The  century  now  dawning  has  undoubtedly  much  in 
store  for  those  who  believe  in  arbitration,  but  what  system 
will  be  established,  and  when,  no  man  can  tell.  Some- 
times it  seems  as  though  some  system  was  about  to  be 
quite  generally  adopted,  and  again,  it  is  as  far  away  as 
ever.  International  and  industrial  arbitration  seem  to 
go  hand  in  hand.  One  day  nations  are  ready  to  agree 
that  international  differences  should  be  arbitrated,  and 
the  next  they  leave  an  order  with  Krupp. 


INDUSTRIAL   CONCILIATION. 

It  is  perhaps  enough  to  say,  that  the  establishment  of 
some  means  of  amicably  settling  differences  is  in  the  line 
of  human  progress,  and  for  that  reason  alone  deserves 
the  best  thought  of  us  all. 


THE    INNOCENT    PUBLIC  — ITS    CASE    PRE- 
SENTED  BY   A   FARMER. 

BY   JOHN    M.    STAHL,    SECRETARY    OF    THE    FARMERS'    NA- 
TIONAL  ASSOCIATION. 

^ 

IT  is  a  well  known  fact  that  frequently  in  war  the  non- 
combatants  suffer  almost  as  much  as  those  in  the  field. 
In  labor  wars  it  is  frequently  the  case  that  what  has  been 
well  termed  the  "innocent  public"  suffer  almost  or 
quite  as  much  as  the  belligerents.  /t)f  the  innocent  pub- 
lic the  farmers  constitute  the  most  considerable  part, 
whether  the  number  of  employers,  the  number  of  labor- 
ers, the  capital  used,  or  the  labor  employed,  be  con- 
sidered. More  than  twice  as  much  actual  capital  is 
employed  in  farming  as  in  any  other  industry  in  this 
country.  And  while,  for  example,  the  debt  of  railways 
equals  their  capital  stock,  and  in  some  cases  the  debt 
fully  equals  the  value  of  the  roads,  farmers  are  in  debt 
for  less  than  ten  per  cent,  of  the  value  of  their  property. 
The  gross  earnings  of  all  the  railways  of  the  country  are 
less  than  one  half  the  annual  product  of  our  farms.  The 
capital  employed  in  manufacture  is  only  one  third  of 
that  employed  in  farming,  and  the  laborers  are  an  even 
less  fraction.  All  the  capital  of  our  national  banks  is 
only  three  per  cent,  of  the  capital  of  farmers  and  only 
one  fourth  of  the  annual  products  of  our  farms.  And 
the  value  at  the  mine  of  all  the  coal  produced  in  this 

238 


INDUSTRIAL   CONCILIATION. 

country  in  1899  was  less  than  one  third  of  the  value  on 
the  farm  of  the  corn  crop  alone.  Farmers  constitute 
by  long  odds  the  most  important  class  of  the  public,  in- 
nocent or  otherwise,  whether  capital  or  labor,  employer 
or  laborer,  be  considered. 

It  is  apparent  that  the  farmer  has  a  right  to  claim 
consideration  as  a  part  of  the  innocent  public;  and  if 
we  emphasize  the  innocent,  the  rightfulness  of  that  claim 
becomes  all  the  more  apparent,  for  while  farmers  are  the 
greatest  employers  of  labor  in  the  country,  and  while 
farm  laborers  are  the  most  numerous  class  of  laborers  in 
the  country,  in  all  our  history  there  has  not  been  a  lock- 
out or  a  strike  on  the  farm,  and  in  all  our  history  it  has 
never  been  necessary  to  call  out  the  militia,  much  less 
the  troops  of  the  regular  army,  to  suppress  a  riotous  mob 
of  farmers  or  of  farm  laborers. 

Therefore  we  farmers  have  the  best  right  of  all  to  be 
the  spokesmen  of  the  innocent  public  in  asking,  Has  the 
innocent  public  no  rights  that  those  responsible  for  lock- 
outs and  strikes  are  bound  to  respect  ?  Are  urban  em- 
ployers of  labor  and  urban  working  men  not  subject  to 
what  the  writers  on  government  agree  is  an  obligation 
of  all  that  enter  into  the  social  relation  and  enjoy  its 
benefits,  to  recognize  and  respect  certain  rights  of  their 
fellow-members  of  organized  society;  or  are  they  privi- 
leged to  take  whatever  forcible  measures  they  choose, 
though  dictated  by  passion  and  prejudice  instead  of 
justice  and  reason,  and  pursue  their  course  regardless 
of  the  hurt  they  may  do  to  others  ?  Are  urban  employ- 
ers of  working  men  and  those  working  men  subject  to  the 
fundamental  obligations  of  the  members  of  society  and  the 
beneficiaries  of  government,  or  are  they  superior  beings, 
free  to  engage  in  labor  wars  that  involve  large  loss  and 


240  INDUSTRIAL   CONCILIATION. 

great  inconvenience  to  thousands  of  others,  the  denial 
of  liberty  of  lawful  action  to  those  willing  to  work,  and 
the  occasional  clubbing  or  shooting  down  of  citizens  by 
those  hired  by  employers  or  those  in  sympathy  with 
strikers,  thus  taking  from  others  what  have  been  asserted 
to  be  "certain  inalienable  rights  of  life,  liberty,  and  the 
pursuit  of  happiness  "  ? 

**There  can  be  but  one  answer  to  these  questions:  The 
innocent  public  has  rights.  There  should  be  no  lockout 
or  strike  without  ample  cause  and  not  before  all  reason- 
able means  have  been  tried  to  settle  the  dispute  that 
^reatens  it.  This  would  be  the  answer  of  farmers  to 
those  questions.  And  as  we  have  seen  that  the  farmers 
have  the  best  right  of  all  to  put  these  questions,  it  is  also 
true  that  they,  being  in  greater  degree  than  any  other 
class  both  employers  and  employees,  are  in  a  position  to 
seek  an  answer  with  the  least  bias  and  prejudice. 

But  from  the  answer  we  give  to  these  questions,  it 
must  not  be  inferred  that  we  favor  compulsory  arbitra- 
tion or  other  forcible  outside  methods  of  settling  labor 
disputes.  We  do  not  favor  them.  Probably  this  is 
chiefly  due  to  our  belief  that  they  are  impracticable,  and 
many  of  us  believe  that  they  are  unnecessary.  There 
seem  to  be  grounds  for  the  contention  of  some  that 
compulsory  arbitration,  at  least  if  it  decided  that  strikers 
must  go  to  work,  would  be  unconstitutional.  But  there 
is  a  yet  higher  law  in  this  country — public  opinion  en- 
forces or  nullifies  laws.  Positive  public  opinion  favor- 
able to  a  law  is  necessary  to  its  enforcement,  and  to 
create  such  a  public  opinion  favorable  to  compulsory 
arbitration  would  take  more  effort  than  is  needed  to 
make  a  public  sentiment  that  will  settle  labor  troubles 
and  avoid  labor  wars  by  other  means.  Individually  I 


INDUSTRIAL   CONCILIATION.  241 

believe  that  every  one,  rich  or  poor,  should  diligently 
engage  in  useful  employment.  If  he  will  not  do  this 
willingly,  he  should  be  compelled  to  do  it.  No  one  has 
a  right  to  be  a  burden  on  society  or  even  a  presumptive 
burden  on  society.  We  ought  to  put  to  work  every  idle 
person  capable  of  work  in  cleaning  streets,  building 
roads,  making  dams  and  ditches  for  irrigation,  and  dig- 
ging ship  canals.  But  I  know  how  useless  it  is  to  expect 
the  American  people,  so  jealous  of  individual  rights, 
ever  to  enact  and  enforce  a  law  to  compel  the  willingly 
idle  to  work  for  the  public;  and  how  much  less  will  that 
public  enact  and  execute  a  law  compelling  those  that  are 
idle,  not  to  work  for  itself,  but  for  some  individual  or 
corporation  with  whom  these  idle  laborers  are  in  bitter 
dispute,  and  about  the  very  matter  of  laboring.  Farmers 
do  not  believe  that  compulsory  arbitration  is  the  best 
solution  of  labor  troubles,  even  in  quasi-public  employ- 
ments. 

What,  then,  is  the  best  solution  of  labor  troubles  and 
the  one  the  innocent  public  has  a  right  to  demand  shall 
be  fairly,  earnestly,  persistently  tried  in  every  case  ? 
The  experience  of  the  National  Stove  Makers'  Defence 
Association  and  of  the  Stove  Moulders'  Union  of  Amer- 
ica gives  the  answer.  To  a  lesser  degree,  because  it  is 
of  shorter  duration,  the  experience  of  the  coal  mine 
operators  and  miners  of  Illinois  gives  the  answer.  So, 
too,  the  experience  of  many  individual  employers  and 
their  employees  gives  the  answer. 

I  will  say  briefly  that  this  plan  is  simply  to  bring 
employers  and  employees  together  in  conference  when 
a  labor  dispute  develops,  the  men  keeping  at  work 
pending  adjustment.  Not  employers,  laborers,  nor  the 
innocent  public  suffer.  It  is  certainly  necessary  that 

16 


242  INDUSTRIAL   CONCILIATION. 

employers  and  their  workmen  should  meet,  by  their 
representatives,  in  conference  as  reasonable  men,  believ- 
ing that  they  may  possibly  be  wrong  and  the  others 
right;  and  it  would  seem  that  it  is  very  desirable,  if  not 
necessary  that  there  be  a  strong  organization  of  both 
parties,  especially  of  the  working  men. 

Now  here  is  where  the  innocent  public  may  make 
itself  felt.  If  made  to  understand  the  fact  that  a  lock- 
out or  strike  that  occasions  it  a  great  inconvenience  and 
a  loss  of  millions  of  dollars  is  probably  a  crime  against 
it,  occasioned  by  arrogance  or  stubbornness  and  igno- 
rance, public  sentiment  will  so  heartily,  generally,  bitterly, 
condemn  the  men  responsible  for  a  lockout  or  strike  that 
such  occurrences  will  be  very  rare.  The  cynic  may  talk 
to  the  contrary,  but  public  sentiment  is  very  powerful 
in  this  country.  Let  the  public  understand  that  it  is 
grievously  imposed  on  by  a  strike  or  lockout;  that  for 
years  strikes  and  lockouts  have  been  avoided  in  one  of 
our  important  industries  by  employers  and  men  simply 
getting  together  as  men  respecting  each  other  to  discuss 
their  grievances;  and  public  sentiment  will  force  em- 
ployers and  men  in  other  industries  thus  to  settle  their 
difficulties. 

Strong  organizations  of  employers  and  laborers  will  aid 
greatly,  if  they  are  not  necessary,  for  they  will  restrain 
the  hot-headed  and  reckless,  who  are  responsible  for 
lockouts  and  strikes.  Also,  if  both  sides  are  well  organ- 
ized they  are  more  apt  to  respect  each  other  and  therefore 
to  enter  into  conference,  and  in  a  reasonable  frame  of 
mind  that  does  not  preclude  just  concessions.  Our 
labor  organizations  are  now  guided  and  controlled  in 
general  by  men  who  are  more  intelligent,  broad-minded, 
reasonable,  and  conservative  than  the  mass  of  the  organ- 


INDUSTRIAL   CONCILIATION.  243 

izations.  Because  of  this  and  the  respect  in  which  strong 
organizations  are  held  by  employers,  those  laborers  that 
are  best  organized  are  least  often  concerned  in  strikes  and 
lockouts.  It  is  a  new  or  imperfect  organization  that  is 
most  often  concerned  in  a  strike  or  lockout,  and  it  is 
the  organization  strong  in  numbers  and  years  that  rarely 
has  to  deal  with  a  strike  or  a  lockout.  This  is  a  fact  we 
may  well  give  the  most  careful  consideration.  It  is  a 
fact  that  very  largely  justifies  labor  organizations  and 
that  may  aid  much  in  determining  the  plan  to  avoid 
labor  wars.  Because  of  this  fact  farmers,  such  an  im- 
portant part  of  the  innocent  public,  are  favorable  to 
labor  organizations;  and  because  of  the  further  fact  that 
such  organizations,  when  wisely  led,  are,  by  making  their 
members  more  intelligent  and  cultured,  the  most  power- 
ful agents  in  raising  the  plane  of  living  of  city  working 
men,  hence  of  increasing  their  wages.  And  this  means 
better  demand  and  higher  prices  for  farm  products. 
True,  it  also  means  higher  prices  for  what  we  farmers 
have  to  buy.  But  as  the  great  majority  of  farmers  sell 
more  than  they  buy,  they  have  a  net  gain  because  of  the 
prosperity  of  working  men  and  all  other  classes  in  the  city. 
Therefore,  irrespective  of  the  losses  often  inflicted  on 
them  directly  by  lockouts  and  strikes,  farmers  are  op- 
posed to  those  labor  wars  that  inflict  such  severe  losses 
on  the  public  and  lessen  the  general  prosperity.  We  are 
heartily  in  accord  with  the  purposes  of  this  conference, — 
to  arouse  the  public  to  the  evils  of  labor  wars,  and  to  the 
fact  that  they  are  not  necessary  and  are  an  imposition  on 
the  innocent  public;  and  to  a  discussion  of  the  best  ways 
and  means  of  settling  disputes  between  employers  and 
workmen  without  loss  to  them  and  without  involving  the 
innocent  public. 


THE   LEGAL  PHASE  OF  THE   ARBITRATION 
QUESTION 

BY    MORRIS   M.    COHN,    PRESIDENT    BOARD    OF    TRADE, 
LITTLE    ROCK,    ARK. 

EVER  since  the  foundation  of  our  government,  the 
existence  of  strikes  has  been  known  in  this  country. 
And  it  has  been  common  knowledge  for  a  long  time 
that  these  unfortunate  methods  of  cure  have  necessarily 
involved  a  great  deal  of  human  suffering,  principally 
among  the  weak  and  dependent  ones.  The  conscious- 
ness of  this  has  made  the  bitterness  of  the  contest  still 
greater  than  it  otherwise  would  have  been,  and  has 
tended  to  extend  the  employment  of  the  boycott.  The 
parties  which  have  been  affected  on  this  account 
have  not  only  been  the  wives  and  children ;  but  whole 
communities,  even  States,  have  been  affected.  Mani- 
festly it  were  well  if  some  method  could  be  found  that 
would  furnish  a  means  of  settlement  of  those  differences 
which  now  are  the  occasion  of  strikes.  Congress  and 
State  legislatures  must  feel  that  such  an  achievement 
would  afford  greater  assurance  of  the  continued  success 
of  our  experiment  in  government  than  any  other  one 
pressing  for  solution. 

I  do  not  intend  to  discuss  the  question  of  arbitration 
from  the  sociological  or  economic  standpoint,  nor  to 
point  out  any  course  of  action  that  may  be  successfully 

244 


INDUSTRIAL   CONCILIATION.  245 

used  to  meet  the  evils  referred  to.  All  that  I  will  under- 
take to  do  in  this  paper  is  to  present  the  legal  phase  of 
the  arbitration  question. 

The  history  of  early  English  procedure  countenances 
the  idea  that  the  early  administration  of  justice  was  first 
a  process  of  oral  hearing  before  the  whole  clan  or  its 
elders,  and  the  judgment  was  immediate.1  Here,  clearly, 
there  is  little  resemblance  to  a  voluntary  selection  of 
arbitrators.  And  the  later  history  of  the  subject  in  Eng- 
land shows  that  the  next  step  in  progress  was  a  hearing 
before  a  representative  of  a  lord  or  potentate,  with  the 
assistance  of  others  who  came  as  representatives  of  the 
hundreds  or  other  aggregates,  and  consisted  of  listening 
to  the  parties  and  their  compurgators,  or  in  furthering  a 
settlement  of  a  controversy  by  wager  of  battle  or  law,  or 
by  ordeal.  At  a  period  quite  advanced  in  the  develop- 
ment of  English  history  the  process  of  trial  by  jury  came 
in,  which  resulted  from  a  separation  of  the  function  of 
judging  from  that  of  testifying.  It  was  long  ago  the  estab- 
lished result  of  this  legal  progress  that  the  jury,  though 
selected  from  the  vicinity,  were  selected  because  of  their 
want  of  knowledge,  and  the  facts  were  proved  by  wit- 
nesses, called  by  each  side,  who  testified  before  the  jury, 
to  the  matters  relied  on  in  the  pleadings. 

This  process  of  development  has  been  meagrely  de- 
scribed, and  no  claim  is  made  to  perfect  accuracy  of 
statement,  which  would  require  much  more  detail.8 

1  For  some  observations  on  the  origin  of  judicial  systems  and 
laws,  see  Herbert  Spencer,  Principles  of  Sociology \  vol.  ii.,  part  v., 
chaps.  13  and  14. 

9  Cf.  Heinrich  Brunner,  Entstehung  der  Schwurgerichte  ;  Thayer, 
Development  of  Trial  by  Jury  ;  Pollock  and  Maitland,  History  of 
English  Law,  vol.  ii.,  book  ii.,  chap.  9,  sec.  4. 


246  INDUSTRIAL   CONCILIATION. 

But  the  account  given  indicates  that  the  system  of  trying 
cases  in  English  law  was  quite  other  than  that  of 
arbitration.  The  procedure  in  English  law,  as  is  well 
known  to  lawyers,  became  more  casuistical  and  intricate 
as  it  grew,  developing  into  a  system  of  writs  and 
common-law  procedure,  accompanied  by  the  growth  of 
chancery  and  exchequer  courts. 

The  result  was,  that  by  the  English  common  law,  which 
we  inherited,  agreements  to  submit  to  arbitration  dis- 
putes or  suits  at  law  were  held  to  be  non-enforceable 
by  the  courts.1  Chancery  courts  declined  to  specifically 
perform  them.8  It  was  deemed  to  be  against  public 
policy  for  the  courts  to  recognize  tribunals  or  methods 
of  settling  disputes  by  a  kind  of  judicial  procedure  not 
contemplated  by  law.  And  the  courts  still  largely  ad- 
here to  the  idea  that  it  is  not  competent  for  parties  to 
substitute  arbitrators  for  judges  or  convert  judges  into 
arbitrators.3  Experience,  however,  even  prior  to  the 
independence  of  this  country,  demonstrated  that  this 
attitude  of  the  courts  did  not  meet  the  requirements  of 
the  English  people.  As  Sir  William  Blackstone  has  said: 
"Experience  having  shown  the  great  use  of  these  peace- 
able and  domestic  tribunals,  especially  in  settling  mat- 

1  Scott  v.  Avery,  36  English  Law  and  Equity,  336  ;  S.  C.  5  House 
of  Lords,  811  ;  Roper  v.  Lendon,  I  El.  and  El.,  825  ;  Scott  v.  Insur- 
ance Company,  Stuart,  152  ;  Stephenson  v.  Insurance  Company,  54 
Maine,  55  ;  Insurance  Company  v.  Creighton,  51  Georgia,  95;  Cobb  v. 
Insurance  Company,  6  Gray  (Mass.),  192  ;  Chitty,  Contracts,  vol.  ii., 
1183  (nth  Am.  Ed.);  American  Digest,  Century  edition,  vol.  iv.,  p.  31. 

aPomeroy,  Specific  Performance  of  Contracts,  sec.  291. 

8Cooley,  Constitutional  Limitations,  *  399  ;  Trott  v.  Insurance 
Company,  i  Clifford  (U.  S.  Circuit),  439  ;  Cobb  v.  Insurance  Com- 
pany, supra;  Stephenson  v.  Insurance  Company,  supra;  Insur- 
ance Company  v.  Creighton,  supra. 


INDUSTRIAL   CONCILIATION.  247 

ters  of  account,  and  other  mercantile  transactions,  which 
are  difficult  and  almost  impossible  to  be  adjusted  on  a 
trial  at  law;  the  legislature  has  now  established  the  use  of 
them,  as  well  in  controversies  where  causes  are  depend- 
ing, as  in  those  in  which  no  action  is  brought;  enacting 
by  statute  9  and  10  Wm.  III.,  c.  15,  that  all  merchants 
and  others,  who  desire  to  end  any  controversy,  suit,  or 
quarrel  (for  which  there  is  no  other  remedy  but  by  per- 
sonal action  or  suit  in  equity),  may  agree  that  their 
submission  of  the  suit  to  arbitration  or  umpirage  shall 
be  made  a  rule  of  any  of  the  king's  courts  of  record," 
etc.1  This  legislation  has  been  copied  by  some  of  the 
States.  Compulsory  arbitration  is  not  contemplated  by 
these  statutes. 

For  the  most  part,  compulsory  arbitration  remains  an 
unknown  quantity  in  this  country,9  though  the  courts 
of  the  United  States  have  modified  their  views  as  to  the 
enforceability  of  agreements  to  submit  matters  to  arbitra- 
tion, in  exclusion  of  the  right  to  bring  a  suit  in  regard  to 
the  matter.  Now  it  is  quite  generally  held  that  policies 
of  insurance  requiring  a  submission  of  the  question  of 
amount  of  damage  to  goods  or  property  affected  by  fire 
to  arbitration,  before  a  suit  can  be  brought  on  the  policy, 
are  binding,  if  nothing  has  been  done  to  waive  the  same.3 
Contracts  for  the  construction  of  buildings  and  rail- 
roads which  provide  that  no  claim  shall  be  made  for 
work  or  materials  until  an  estimate  has  been  duly  allowed 
by  the  supervising  architect  or  engineer,  have  been  held 

1  Blackstone,  Commentaries,  book  iii.,  16,  17. 

9Cf.  English  and  American  Encyclopedia  of  Law,  vol.  i.,  article 
44  Arbitration  "  ;  American  Digest,  Century  edition,  vol.  iv.,  article, 
*'  Arbitration  and  Award,"  sec.  10. 

*  See  authorities  in  note  I,  p.  246. 


248  INDUSTRIAL   CONCILIATION. 

valid  and  binding;  and  parties  have  been  held  bound  by 
such  estimates,  and  not  entitled  to  recover  until  they 
have  been  made,  and  then  not  in  excess  thereof,  unless 
fraud  or  overreaching  can  be  shown.1  And  though 
chancery  courts  announce  their  inability  to  specifically 
perform  agreements  to  submit  to  arbitration,  they  do 
not  allow  parties  to  be  defrauded  out  of  their  rights 
on  this  account;  as  in  cases  where  agreements  pro- 
vide for  the  valuation  of  property,  leaving  the  ques- 
tion of  value  to  be  settled  by  arbitrators  to  be  selected 
by  the  parties,  and  the  owner  refuses  to  appoint  arbi- 
trators. In  such  cases  the  chancery  courts  will  not 
allow  the  agreement  to  fail  on  account  of  the  owner's 
wrongdoing.8 

These  were  cases  in  which  property  interests  are  at 
stake,  or  damage  had  already  accrued.  But  in  the  case 
of  labor  disputes  the  question  relates  to  a  wage  still  to  be 
earned  or  a  service  still  to  be  performed,  and  still  to  be 
contracted  for.  If,  in  this  class  of  cases,  the  parties 
choose  to  agree  to  submit  their  disputes  as  to  wages  to 
arbitration,  and  arbitrators  are  selected,  and  they  fix  by 
honest  award  the  wage  to  be  paid  or  the  service  to  be 
performed,  and  the  employer  and  employee  enter  into 
relations  upon  the  faith  of  these  findings,  there  can  be 
no  doubt  that  the  award  will  bind  the  parties.'  There 
is  something  to  sustain  the  belief  that,  if  a  question 
should  arise  which  the  parties  had  previously  agreed 
they  would  leave  to  arbitration,  this  will  preclude  a 

1  American  Digest,  Century  edition,  vol.  xi.,  article,  "  Contracts," 
sec.  1308,  seq. 

2Cf.  American  Digest,  Century  edition,  article,  "Arbitration  and 
Award,"  sec.  108. 

3 Id.,  sec.  440. 


INDUSTRIAL   CONCILIATION.  249 

recourse  to  the  courts  before  arbitration  has  been  had, 
or  in  disregard  of  the  award.1 

But  this  will  not  meet  the  evil,  and  it  can  only  be  met, 
so  the  argument  assumes,  by  legislation  which  shall  be 
compulsory  on  both  parties.  And  the  question  arises, 
to  what  extent  may  Congress  and  our  State  legislatures 
compel  a  resort  to  arbitration,  and  provide  a  process  of 
arbitration  for  this  purpose  ? 

The  Seventh  Amendment  to  the  Constitution  of  the 
United  States  gives  a  right  to  trial  by  jury  in  all  civil 
cases  at  law  where  the  value  in  controversy  exceeds 
twenty  dollars.  The  federal  courts  hold  that  this  right 
cannot  be  taken  away,  except  by  the  assent  of  the 
parties  entitled  to  it,2  and  they  also  hold  that  this  pro- 
vision applies  to  the  territories  of  the  United  States.3 
This  being  so,  in  such  cases  no  person  can  be  compelled 
by  Congress  to  submit  his  controversy  to  arbitration.4 
A  penal  law  is  probably  in  the  nature  of  a  criminal  law, 
so  far  as  relates  to  the  right  of  trial  by  jury.5  If  it  is 
not  it  is  at  least  in  the  nature  of  a  civil  law.  If  it  is 
equivalent  to  a  criminal  law,  under  Article  III.  of  the 
Constitution  of  the  United  States,  it  must  be  tried  by 

1  See  note  i,  p.  248. 

3  Hodges  v.  Easton,  106  U.  S.,  408  ;  Killian  v.  Ebbinghaus,  no 
U.  S.  568  ;  Scott  v.  Neeley,  140  U.  S.  106,  109,  no. 

3  Webster  v.  Reid,  n  Howard  (U.  S.),  437,  460;  Callan  v.  Wil- 
son, 127  U.  S.,  540  ;  American  etc.  Co.  z/.  Fisher,  166  U.  S.,  464, 
468  ;  Springville  v.  Thomas,  166  U.  S.,  707  ;  Thompson  v.  Utah, 
170  U.  S.,  343,  346. 

*Cf.  St.  Louis  etc.  Ry.  Co.  v.  Williams,  49  Ark.,  492;  Hare, 
Constitutional  Law,  vol.  ii.,  863  seq. 

5  See  Boyd  v.  United  States,  116  U.  S.,  616,  634  ;  Lees  v.  United 
States,  150  U.  S.,  476,  480 ;  Iowa  v.  Railroad  Company,  37  Federal 
Reporter,  497. 


250  INDUSTRIAL   CONCILIATION. 

jury.1  If  it  is  in  the  nature  of  a  civil  law,  a  right  to 
trial  by  jury  exists  under  most,  if  not  all,  of  the  State 
constitutions,  and,  as  we  have  seen,  the  Constitution  of 
the  United  States.  And  this  right  cannot  be  taken  away 
in  felony  cases  even  with  the  consent  of  the  accused.9 
There  are  similar  provisions  in  all  of  the  State  constitu- 
tions, and  the  rulings  mentioned  refer  to  them.8  So  that 
if  a  controversy  arises,  or  may  arise,  which  entitles  a  party 
to  a  jury  trial,  compulsory  arbitration  cannot  be  enforced, 
without  an  amendment  of  our  constitutions.4  But,  as- 
suming that  labor  disputes  are  not  matters  in  controversy 
which  can  be  understood  to  be  embraced  by  the  pro- 
visions of  the  constitutions  of  the  United  States  and  of 
the  States  which  have  been  cited,  then  what  of  the  law  ? 

Congress  and  the  States  are,  by  the  Constitution  of  the 
United  States,  prohibited  from  depriving  any  person  of 
his  property  without  due  process  of  law,  or  without 
making  compensation  therefor.6  Nor,  under  the  same 
instrument,  may  any  person  be  deprived  of  his  life  or 
liberty  without  due  process  of  law.8 

Now  a  submission  to  arbitration  is  in  the  nature  of  a 
contract.7  And  the  question  is,  can  Congress  or  the 
States  compel  parties  to  submit  to  this  contract,  or  to 

Article  III.,  sec.  2. 

"Cooley,  Constitutional  Limitations \  3d  ed.,  399;  Thompson  and 
Merriam,  Juries^  sec.  7. 

1  See  also  cases  cited  in  next  note. 

4  St.  Louis  etc.  Ry.  Co.  v.  Williams,  49  Ark.,  492  ;  In  re  Bill  re- 
lating to  Arbitration,  9  Colorado,  629.     See  note  4,  p.   249. 

5  Fifth  Amendment  to  the  Constitution  of  the  United  States,  sec. 
I,  and  Fourteenth  Amendment  thereto,  sec.  I. 

6  Idem. 

7 District  of  Columbia  v.  Bailey,  171  U.  S.,  161,  171  ;  Driggs  ?/. 
Morgan,  2  La.  Ann.,  151, 


INDUSTRIAL   CONCILIATION. 

this  curtailment  of  their  right  to  contract  ?  The  Supreme 
Court  of  the  United  States  and  the  courts  of  the  States 
have  denied  the  right  of  the  legislatures,  under  these  pro- 
visions of  the  Constitution,  or  equivalent  provisions  in 
State  constitutions,  to  interfere  with  the  right  to  con- 
tract, on  the  ground  that  this  right  grows  out  of  the 
right  to  be  free,  to  do  those  things  that  grow  out  of  the 
exercise  of  inalienable  rights,1  and  in  one  case,  where  a 
corporation  was  interested,  it  was  put  on  the  ground  that 
such  legislation  was  an  interference  with  property  rights.2 

Still,  as  to  corporations,  it  may  be,  where  the  power 
to  amend  charters  has  been  reserved,  that,  as  to  them, 
compulsory  arbitration  may  be  provided 3  if  the  doing  so 
does  not  interfere  with  the  enjoyment  of  their  property 
in  the  sense  of  a  deprivation  of  property,  without  due 
compensation  or  due  process  of  law.4  For  it  is  settled 
that  corporations  are  not  individuals  to  whom  the  pro- 
visions relating  to  life  and  liberty  are  applicable.5 

If   the   limitations   above  shown  to  exist   are  to   be 

'Allgeyer  v.  Louisiana,  165  U.  S.,  578,  589;  State  v.  Loomis,  22 
S.  W.  Reporter  (Mo.)  350  ;  Kuhn  v.  Common  Council,  70  Michi- 
gan, 534  ;  Frorer  v.  People,  141  Illinois,  171  ;  Eden  v.  People,  161 
Illinois,  290  ;  Ex-Parte  Jentsch,ii2  California,  468. 

9  Railroad  Company  v.  Smith,  173  U.  S.,  684,  693,  696. 

3  Cf.  Leep  v.  Railroad  Company,  58  Arkansas  407,  427  ;  Woodson 
v.  State,  69  Ark.  521,  526  ;  Railroad  Company  v.  Paul,   173  U.   S., 
404,  408  ;  Holdenz/.  Hardy,  169  U.  S.,  366. 

4  See  authorities  in  preceding  note.     A  jury  trial  in  the  States  is 
not  assured  by  the  Fourteenth  Amendment.     Railway  Company  v. 
Iowa,  160  U.  S.,  389,  394;  Brooks  v.  Missouri,   124  U.  S.,  394; 
Spiess  v.  Illinois,  123  U.  S.,  131,  166.     Cf.  McNulty  v.  California, 
149  U.  S.,  645. 

6  Paul  v.  Virginia,  8  Wallace  (U.  S.),  168  ;  Railroad  Co.  v.  Penn- 
sylvania, 136  U.  S.,  114,  118  ;  Railway  Co.  v.  Paul,  173  U.  S.,  404, 
406  seq  ;  Leep  v.  Railway  Co.,  58  Arkansas,  407,  427. 


252  INDUSTRIAL   CONCILIATION. 

escaped,  in  the  case  of  individuals,  and  in  the  case  of 
corporations  where  applicable,  it  must  be  by  amend- 
ment to  the  constitutions  of  the  United  States  and  the 
States.  It  may  be  that,  where  State  constitutions  pro- 
vide for  compulsory  arbitration  in  these  matters,  and  thus 
by  constitutional  amendment  curtail  the  instances  in 
which  a  trial  by  jury  shall  be  a  right,  and  affect  to  this 
extent  the  right  to  contract,  the  Federal  courts,  as  well 
as  the  State  courts,  may  uphold  the  same,  in  spite  of  the 
Constitution  of  the  United  States;  though  that  is  an 
open  question  which  is  by  no  means  clear.1 

In  closing  the  discussion  of  the  matters  which  have 
engaged  our  attention  in  this  paper,  it  is  well  to  bear  in 
mind  that  the  province  of  Congress  extends  only  to  such 
interests  as  are  conferred,  either  expressly  or  by  implica- 
tion, upon  it  by  the  Constitution  of  the  United  States; 
and  that  the  States  enjoy  the  right  to  legislate  regarding 
all  internal  police  affairs,  within  their  domains.  This 
power  of  Congress  may  find  expression  in  government 
contracts,  in  the  regulation  of  post-offices  and  post- 
roads,  in  revenue  and  admiralty  cases,  and  to  cases  in 
equity  in  federal  courts,  as  well  as  in  the  regulation  of 
law  proceedings  in  the  same  courts.  And  the  powers  of 
the  States  may  be  expressed  in  revenue  acts,  acts  relat- 
ing to  the  condemnation  of  rights  of  way,  acts  relating 
to  assessments  for  local  improvements,  as  well  as  in 
government  contracts  and  court  proceedings,  etc.2  And 

1  Cf.  Railway  Co.  v.  Paul,  173  U.  S.,  404,  and  authorities  in  notes 
2  and  3,  below. 

2  This  recital  of  powers  is  not  intended  to  be  exhaustive.     Cf. 
Brown  Gordon  v.  United  States,  7  Wallace  (U.  S.),  188  ;  Chorpen- 
ning  v.  United  States,  n  Court  of  Claims,  625  ;  Jersey  City  R.  Co. 
v.  Jersey  City  &  H.  R.  Co.,  20  New  Jersey  Equity,  61. 


INDUSTRIAL   CONCILIATION.  253 

it  is  conceivable  that  in  the  exercise  of  these  powers  a 
resort  to  arbitration  may  be  provided  for  without  coming 
into  conflict  with  any  constitutional  provision. 

In  revenue  cases  it  has  been  held  sufficient  if  the  party  affected 
has  an  opportunity  to  be  heard  before  a  board  of  equalization  :  Rail- 
road Co.  v.  Backus,  154  U.  S.,  421  ;  Kentucky  Railroad  Tax  Cases, 
115  U.  S.,  321;  Hagar  v.  Reclamation  District,  in  U.  S.,  701; 
Davidson  v.  New  Orleans,  96  U.  S.,  97  ;  Wurts  v.  Hoagland,  114 
U.  S.,  606  ;  Murray  v.  Hoboken  Land  etc.  Co.,  10  Howard  (U.  S.), 
372  ;  Railroad  Co.  v,  Worthen,  52  Arkansas,  529.  In  cases  of 
assessments  for  local  improvements  it  is  sufficient  if  a  party  has  a 
hearing  before  a  board  of  assessment ;  Wurts  v.  Hoagland,  supra: 
Cases  of  condemnation  under  the  prerogative  of  eminent  domain 
do  not  necessarily  require  a  jury  trial :  Hulrieg  v.  R.  and  Im- 
provement Co.,  130  U.  S.,  559  ;  Long  Island  etc.  Co.  v.  Brooklyn, 
166  U.  S.,  685.  Contempt  proceedings  do  not  require  a  jury  trial. 
Ex-Parte  Wall,  107  U.  S.,  625  ;  Finsley  v.  Anderson,  171  U.  S., 
101,  108.  There  is  no  absolute  right  to  a  jury  trial  in  an  equity 
cause  :  Shields  v.  Thomas,  18  Howard  (U.  S.),  253,  261  ;  Barton 
v.  Barbour,  104  U.  S.,  126,  133.  There  is  in  some  admiralty  cases 
because  an  act  of  Congress  so  provides  :  Rev.  Stat.  U.  S.,  sec.  566. 
Clauses  in  government  contracts  have  been  upheld  which  required 
the  right  to  compensation  to  depend  upon  the  certificate  of  a  third 
person:  Kihlberg  v.  United  States,  97  U.  S.,  398;  Sweeny  v.  United 
States,  109  U.  S.,  618. 


THE  ATTITUDE  OF  LABOR  UNIONS  TO- 
WARD MACHINERY  AND  RESTRICTIONS 
ON  OUTPUT.1 

BY    HENRY    WHITE,    SECRETARY   OF    THE    UNITED   GAR- 
MENT   WORKERS   OF    AMERICA. 

THE  question  of  machinery  and  labor  involves  the 
whole  industrial  problem.  The  complexity  of  con- 
ditions due  to  the  introduction  of  machinery  has  caused 
wide  differences  of  opinion  upon  the  question  of  wealth 
distribution.  Under  the  simpler  methods  of  industry 
the  manner  in  which  the  proceeds  of  labor  were  divided 
was  more  readily  understood.  To-day,  however,  the 
system  is  so  highly  organized  that  there  is  much  con- 
fusion as  to  its  workings.  The  perplexity  is  so  great 
that  many  see  in  labor-saving  inventions  some  malign 
purpose,  and  others  again,  who  discern  that  any  means 
which  enhances  the  productiveness  of  labor  must  benefit 
mankind,  are  unable  to  comprehend  the  manner  by 
which  that  result  is  effected.  The  habit  of  judging  the 
operations  of  so  complex  a  system  by  its  effect  upon 
certain  interests  rather  than  judging  it  as  a  whole  ac- 

1  This  paper,  although  prepared  for  the  New  York  Conference, 
was  not  read  at  that  time,  but  since  it  deals  with  the  serious 
objection  to  labor  unions  referred  to  in  the  Conference  by  Mr. 
Schwab  (see  page  33)  it  is  here  included  as  a  statement  of  the  em- 
ployee's side  of  that  question.— Secretary  National  Civic  Federation. 

254 


INDUSTRIAL   CONCILIATION.  2$$ 

counts  for  the  common  misconceptions  regarding  the 
service  rendered  by  machinery  to  society. 

If  people  were  to  consider  how  meagre  would  be  the 
rewards  of  toil  without  machinery,  how  costly  the  neces- 
saries of  life,  and  how  small  the  purchasing  power  of  the 
laborer,  the  advantage  of  machinery  would  soon  become 
apparent.  The  confusion  is  increased  by  the  dual  rela- 
tion which  a  person  occupies  as  a  producer  and  as  a 
consumer.  As  a  consumer,  he  benefits  almost  at  once 
by  every  saving  in  effort,  while  as  a  producer  his  means 
of  a  livelihood  may  in  consequence  be  threatened.  The 
laborers  thrown  out  of  work  by  a  machine,  or  even  the 
merchant  forced  out  of  business  through  some  combi- 
nation, cannot  be  expected  to  appreciate  such  economy. 
In  both  cases  their  horizon  is  limited  to  their  own  im- 
mediate means  of  a  livelihood. 

When  a  person  finds  his  occupation  suddenly  gone,  it 
outweighs  all  other  considerations,  and,  unmindful  of 
the  benefits  he  may  have  derived  from  similar  economies 
in  other  trades,  inventions  to  him  seem  a  curse.  The 
rewards  of  the  particular  invention  which  distresses  him 
go  to  the  body  of  consumers,  and  he  only  shares  in- 
directly as  one  of  them.  In  the  case  of  the  wage  worker 
the  gain  is  not  as  evident  as  it  is  with  the  manufacturer 
who  first  utilizes  an  invention. 

The  confusion  concerning  the  value  of  machinery 
is  not  strange,  considering  the  absurd  notions  which 
are  rife  regarding  the  elementary  principles  of  political 
economy.  No  distinction  is  usually  made  in  the  popular 
mind  between  useful  and  useless  labor.  There  is  sup- 
posed to  be  only  a  given  amount  of  work  to  be  done, 
and  hence  the  inference  that  the  less  each  one  does 
the  more  jobs  there  will  be  to  go  around.  If  wealth 


256  INDUSTRIAL   CONCILIATION. 

be  wasted  or  destroyed  it  will  in  some  mysterious 
manner  be  replaced.  The  destruction  of  property  by 
fire  or  flood  is  regarded  with  complacency  by  those  not 
directly  affected,  upon  the  supposition  that  more  work  is 
thereby  provided,  without  taking  into  account  that  the 
wealth  required  to  replace  it  must  be  diverted  from  some 
productive  use.  The  spending  or  circulating  of  money 
is  equivalent  to  creating  wealth.  Luxury  is  looked  upon 
with  more  favor  than  frugality,  and  it  is  even  thought 
that  gambling  benefits  a  community  as  much  as  industry, 
because  the  fortunate  ones  spend  freely  and  the  misery 
which  it  begets  is  lost  sight  of.  With  such  erroneous 
ideas  entertained  even  by  educated  people,  it  is  apparent 
why  the  complex  operations  of  our  industrial  system  are 
so  slightly  understood.  The  expansion  of  industry 
which  follows  labor-saving  devices,  the  creation  of  new 
industries,  and  the  consequent  replacing  of  those  dis- 
placed, is  unintelligible  to  all  save  the  few  who  compre- 
hend economic  principles. 

There  are  historic  causes  which  have  created  this  an- 
tipathy to  machinery.  During  the  transition  from  the 
domestic  to  the  factory  system  in  England,  machinery 
became  a  club  to  subjugate  the  laborer.  Untutored, 
unorganized,  without  any  resisting  power,  the  former 
independent  artisan,  now  a  factory  hand,  was  placed  in 
brutal  competition  with  his  fellows,  and  every  invention 
only  added  to  his  helplessness.  The  plight  of  the  Eng- 
lish laborers  at  that  time  abundantly  shows  that  there 
are  circumstances  in  which  the  wealth  of  a  nation  may 
increase  tremendously,  the  productive  power  of  labor 
multiply  many  fold,  while  the  workers,  on  the  other 
hand,  become  impoverished  and  brutalized.  Mill  was 
of  the  opinion  that  machinery  had  not  benefited  the 


INDUSTRIAL    CONCILIATION. 

working  class,  but  happily,  since  the  time  in  which  he 
wrote,  education  and  organization,  two  indispensable 
factors  in  their  advancement,  have  come  to  their  aid. 
An  upward  trend  has  in  consequence  taken  place,  and 
the  stimulus  which  it  has  given  will  make  a  relapse 
as  impossible  as  the  advance  in  sanitary  science  makes 
another  visitation  of  a  plague.  Where  the  workers  have 
succeeded  in  acquiring  some  independence  in  raising 
their  standard  of  living,  machinery,  despite  the  draw- 
backs described,  has  undoubtedly  become  a  potent 
factor  in  the  elevation  of  their  class. 

Under  a  collective  system,  the  immediate  benefit 
which  would  be  derived  by  each  individual  through 
labor-saving  inventions  is  the  chief  merit,  but  to  com- 
pare the  good  features  of  an  imaginary  social  system 
with  the  disadvantages  of  the  existing  one  is  an  easy 
task.  It  can,  however,  be  shown  that  this  desired  co- 
operative principle  actually  does  work  out  at  the  present 
time  in  a  rough  way  by  the  distribution  of  the  benefits  of 
inventions  throughout  society,  and  that  there  are  pos- 
sibilities for  its  more  perfect  application. 

As  to  the  workers'  share  in  production,  Karl  Marx  in 
his  incisive  analysis  comes  to  the  conclusion  that  the 
value  of  commodities  is  based  upon  the  labor  cost  plus 
the  profits  of  the  capitalist.  In  that  he  is  in  accord  with 
the  authorities  upon  social  science  since  Adam  Smith. 
He  deduces  therefrom,  that  labor  alone  represents  the 
actual  wealth  which  is  exploited  for  profit  by  the  capital- 
ist, and  that  the  very  capital  invested  was  previously 
appropriated  from  the  laborer.  Granting  this  conclu- 
sion, Marx  should  have  made  allowance  for  the  com- 
petition between  capitalists  by  which  the  price  of  com- 
modities is  kept  within  certain  limits  and  the  benefits 


258  INDUSTRIAL    CONCILIATION. 

of  cheaper  production  are  given  to  the  consumer.  In 
the  cases  Marx  deals  with,  cheaper  production  unfor- 
tunately did  not  mean  only  more  economical  methods, 
but  lower  wages  and  longer  hours  and  the  sacrifice  of 
the  worker,  while  the  consumer  represented  some  one 
else  than  the  operative,  who  barely  subsisted  on  his  pit- 
tance. Without  the  ability  to  purchase  the  goods  he 
produced,  England  had  to  dispose  of  in  foreign  markets 
that  which  should  have  been  consumed  at  home,  always 
the  best  market.  Her  chief  dependence  being  upon 
outside  markets,  everything  had  to  be  subordinated  to 
cheaper  production. 

Concerning  the  attitude  of  trade-unions  upon  the 
question  of  machinery,  the  membership  being  composed 
of  men  with  the  usual  abilities,  their  views  do  not  ma- 
terially differ  from  others.  Having,  however,  the  benefit 
of  an  education  derived  from  a  close  study  of  economic 
problems  and  an  experience  which  has  helped  them  to 
form  broader  opinions,  they  are  gradually  reconciling 
themselves  to  machinery.  In  a  resolution  introduced  at 
the  late  convention  of  the  American  Federation  of  Labor 
held  at  Scranton,  by  the  delegates  of  the  Cigarmakers' 
International  Union,  requesting  that  a  certain  firm  be 
declared  unfair,  there  was  reference  to  a  cigarmaking 
machine  used  in  the  shop  of  this  employer.  Although 
the  machine  was  mentioned  as  an  evidence  only  of  the 
inferiority  of  the  product  of  the  concern,  a  vigorous  ob- 
jection was  at  once  raised  by  the  delegates  against  any 
mention  of  the  use  of  machinery  by  the  firm.  In  the 
debate  which  followed  it  was  argued  that  the  convention 
could  not  afford  to  go  on  record  as  against  labor-saving 
devices  and  that  any  attempt  to  oppose  them  would 
prove  futile.  The  objectionable  words  were  stricken  out 


INDUSTRIAL   CONCILIATION.  259 

by  a  decisive  vote.  As  to  what  action  the  convention 
would  have  taken  if  the  delegates  had  thought  it  possible 
to  suppress  the  machine  is  a  question.  The  decision  of 
the  convention,  however,  has  brought  the  movement  to 
a  point  in  which  the  members  will  be  enabled  to  take  a 
more  liberal  and  completer  view  of  the  subject,  and  to 
realize  that  the  limitation  of  work  is  not  only  impolitic, 
but  that  by  increasing  their  capacities,  the  opportunity 
is  afforded  for  them  to  insist  upon  a  fair  share  in  the 
larger  product.  The  British  unions  have  not  advanced 
in  that  respect  as  far  as  the  American  unions,  because 
the  habits  of  the  working  people  there  are  more  set,  but 
circumstances  have  also  changed  very  much  their  atti- 
tude toward  machinery. 

The  Typographical  Union  is  a  notable  example  of  a 
union  which  accepted  a  revolutionizing  invention  as 
being  inevitable,  and  thus  succeeded  in  securing  a  rate 
of  wages  for  the  operators  considerably  in  excess  of  that 
received  by  hand  compositors.  An  officer  of  the  New 
York  union  estimates  that  each  linotype  machine  intro- 
duced into  the  newspaper  offices  displaced  three  men, 
but  that  within  three  years,  owing  to  the  increase  in  the 
size  of  the  newspapers  and  the  larger  demand  for  printed 
matter  which  it  encouraged,  the  men  laid  off  have  been 
re-employed  and  that  to-day  the  pay-rolls  even  exceed 
the  former  figure.  This  machine  has  also  had  the  effect 
of  elevating  the  standards  of  the  craft,  owing  to  the 
higher  skill  and  education  required.  The  competition 
among  employers  is  such  that  profits  are  reduced  to  a 
minimum,  the  public  therefore  receiving  the  full  benefit 
of  the  improvement. 

In  the  building  trades  similar  results  are  also  noted. 
Improved  methods  have  led  to  a  prodigious  expansion 


260  INDUSTRIAL   CONCILIATION. 

in  building  operations.  The  laborious  work  is  now 
largely  done  by  mechanical  means,  and  parts  of  a  struc- 
ture, such  as  the  trimmings,  are  made  in  factories  and 
are  only  fitted  together  upon  the  premises.  The  sub- 
dividing of  the  work  is  carried  on  to  such  an  extent  that 
a  number  of  contractors,  each  performing  a  distinct  func- 
tion, co-operate  in  the  completion  of  a  single  building. 
When  this  specialization  began  and  the  ingenious  hod- 
hoisting  device  made  it  unnecessary  for  men  to  make 
beasts  of  burden  of  themselves,  a  general  alarm  was 
created  over  the  prospect  of  great  numbers  of  workmen 
being  thrown  out  of  employment.  To-day  a  far  greater 
number  of  men  are  steadily  employed  in  this  fundamen- 
tal industry  than  at  any  time  in  its  history. 

Examples  of  this  kind  can  be  cited  indefinitely  to 
demonstrate  the  larger  results  which  flow  from  greater 
economy  in  effort.  Allowances  are  seldom  made  for  the 
enterprises  which  could  not  be  carried  on  at  all  were  it 
not  for  labor-saving  methods. 

The  lowering  of  the  costs  of  commodities  enables  the 
average  person  to  indulge  in  what  were  formerly  con- 
sidered luxuries,  and  those  which  encourage  the  devel- 
opment of  new  industries.  The  tendency  under  the 
influence  of  machinery  is  for  industry  to  spread  out  fan 
shape,  ever  widening  as  the  distance  from  the  starting- 
point  increases.  Were  it  not  for  the  limitations  set  by 
the  purchasing  capacity  of  the  people,  and  the  periodical 
disarrangments  or  panics  which  occur  as  a  result  of  what 
is  conveniently  termed  overproduction,  there  would  be 
no  check.  To  fear  a  surfeit  of  wealth  seems  absurd 
considering  the  needs  of  the  average  person.  What  is 
meant  by  overproduction  is  the  inability  to  buy  what 
has  been  produced. 


INDUSTRIAL   CONCILIATION.  261 

Russia,  with  her  immense  population,  is  unable  to 
consume  the  products  of  her  few  mills,  while  in  the 
United  States,  where  the  efficiency  of  labor  is  higher  than 
anywhere  else  and  is  being  increased  at  a  marvellous  rate, 
not  to  speak  of  the  half-million  aliens  absorbed  every 
year,  the  percentage  of  unemployed  is  lower  than  it  has 
been  for  years,  and  even  less  than  during  the  earlier  part 
of  our  history  when  manufacturing  was  in  its  infancy. 

To  increase  the  purchasing  capacity  of  the  people  either 
by  higher  wages  or  cheaper  products  is  to  reduce  the 
surplus  and  maintain  the  equilibrium, hence  the  economic 
value  of  higher  standards  of  living.  Production  cannot 
be  greater  than  the  ability  of  the  average  person  to  con- 
sume, any  more  than  water  can  rise  higher  than  its 
source.  Therefore  increased  production  must  be  accom- 
panied by  the  same  increase  in  consumption,  if  normal 
conditions  are  to  be  maintained.  No  matter  to  what 
extent  machinery,  division  of  labor,  or  economy  in  man- 
agement may  be  perfected,  theoretically  the  demand 
for  labor  ought  not  to  diminish. 

The  eight-hour  work-day  is  advocated  by  many,  not 
because  of  the  personal  benefit  to  the  workmen,  but  upon 
the  same  grounds  that  they  would  favor  the  curtailment 
of  production,  in  the  belief  that  it  would  increase  the 
number  employed.  By  decreasing  the  average  amount 
of  work  done  in  order  that  it  may  be  distributed  more 
evenly,  that  object,  as  I  have  tried  to  explain,  may  tem- 
porarily be  accomplished,  but  if  generally  practised  there 
would  follow  a  decrease  in  the  demand  for  work  through 
the  increase  in  the  price  of  the  commodity. 

It  is  doubtful,  besides,  if  workmen  in  a  particular 
craft  have  ever  succeeded  for  a  length  of  time  in  erect- 
ing a  wall  around  themselves  and  preventing  as  many 


262  INDUSTRIAL   CONCILIATION. 

extra  men  as  could  be  employed  from  getting  in  if  the 
emoluments  were  sufficient.  Consequently,  even  if  it 
were  possible  to  so  restrict  work  as  to  create  a  scarcity 
of  workmen,  this  pressure  from  without  would  prove 
irresistible  and  the  normal  level  would  be  maintained. 
If,  on  the  contrary,  a  lack  of  work  would  make  a  number 
of  workmen  superfluous,  there  would  be  a  tendency  for 
them  to  find  their  way  into  growing  occupations.  Union 
regulations,  such  as  apprenticeship  rules,  can  and  do 
prevent  undue  crowding  into  a  trade  owing  to  a  sudden 
and  temporary  demand,  which  would  prove  highly  in- 
jurious unless  checked,  for  it  would  serve  to  break  down 
standards  held  by  the  union.  Through  such  means, 
an  assimilation  of  those  entering  the  trade  is  gradually 
accomplished. 

Unions  have  been  frequently  charged  with  trying  to 
restrict  output.  The  same  accusation  has  also,  with 
equal  effect,  been  made  against  industrial  combina- 
tions. In  many  cases  where  unions  endeavor  to  prevent 
"  rushing  "  or  "  driving  "  injurious  to  the  worker,  they 
have  been  accused  of  limiting  work.  Such  restrictions 
can  be  easily  defended.  That  labor  organizations  have 
in  some  instances  attempted  to  prevent  the  use  of  labor- 
saving  appliances  there  can  be  no  question,  considering 
the  prevailing  ideas  on  the  subject.  Organized  workmen 
can  give  force  to  what  with  others  is  only  latent  opposi- 
tion, but  that  such  is  not  the  policy  of  the  labor  move- 
ment, I  have  just  illustrated.  The  opposition  to 
labor-saving  methods  is  not  confined  to  workmen  alone, 
for  employers  will  rail  against  competitors  able  to  give  bet- 
ter service  for  less  cost.  The  same  resentment  at  being 
forced  out  of  a  settled  occupation  is  entertained  by  all. 

The  actual  injury  done  by  machinery  is  caused  by  the 


INDUSTRIAL    CONCILIATION.  263 

suddenness  of  the  changes.  Since  there  can  be  no 
way  of  regulating  inventive  genius,  and  the  incentives 
for  using  improvements  will  remain  as  strong,  the  rational 
and  the  only  way  to  meet  them  is  by  preparation.  The 
working  class  suffers  most  because  it  is  less  able  to  ac- 
commodate itself  to  new  situations.  The  rising  genera- 
tion should  be  better  equipped  with  a  general  knowledge 
of  mechanics,  and  taught  how  to  handle  tools  with  skill. 
Such  a  training  would  undoubtedly  relieve  the  difficulty, 
and  it  could  only  be  adequately  supplied  by  the  public 
schools.  The  result  would  be  to  increase  the  independ- 
ence of  workmen,  as  they  would  not  then  rely  upon  a 
small  division  of  a  trade,  or  upon  a  single  employer. 
Independence  and  higher  wages  go  together.  Unskilled 
laborers  in  some  cases  earn  more  than  skilled  mechanics, 
for  the  reason  that  workmen  trained  only  in  one  craft 
are  usually  unfitted  for  other  work,  while  those  accus- 
tomed to  being  thrown  upon  their  own  resources  are 
more  adaptable. 

It  is  regrettable  that  even  the  temporary  disadvantages 
of  industrial  progress  should  fall  heavily  upon  some  to 
the  advantage  of  others,  but  it  is  as  unavoidable  as  fric- 
tion is  to  motion.  The  suffering  can  be  mitigated  only 
in  proportion  as  our  knowledge  of  the  methods  of  indus- 
try increases,  by  recognizing  the  inevitableness  of  the 
changes  and  preparing  to  meet  them. 

Economic  laws,  like  the  laws  of  nature,  admit  of  no 
exceptions.  Were  that  possible,  the  consequences  would 
make  the  present  hardships  seem  nothing  in  compari- 
son ;  in  fact,  society  would  quickly  disintegrate  and  revert 
to  its  primitive  state.  If  society  had  to  wait  for  the 
sanction  of  every  person  before  a  forward  step  could 
be  taken,  it  would  never  start.  In  the  process  of 


264  INDUSTRIAL   CONCILIATION. 

adjustment  and  readjustment,  which  progress  implies, 
it  is  unavoidable  that  some  have  to  be  forced  out  of 
settled  grooves  and  made  to  fit  into  new  ones.  It  is  this 
adaptability  to  change  which  characterizes  modern  enter- 
prise, this  willingness  to  suffer  immediate  discomforts 
for  the  achievement  of  larger  ends. 

In  the  case  of  the  aged  workman  the  situation  is 
especially  hard,  as  he  cannot  find  any  place  in  an  indus- 
trial system  in  which  alertness  counts  for  more  than  skill. 
He  cannot  profit  by  accumulated  experience  as  others 
do.  It  is  the  tragic  side  of  the  question,  this  grievous 
predicament  of  the  worker  who  has  spent  his  energies 
adding  to  the  nation's  wealth.  It  can  and  ought  to  be 
overcome,  not  by  any  system  of  almsgiving,  which  must 
always  prove  inadequate,  not  by  retiring  him  to  idleness, 
but  by  keeping  him  employed  at  such  work  as  his  long 
training  and  peculiar  abilities  fit  him  for.  As  his  earn- 
ing power  declines  at  a  certain  period  some  system  of 
insurance  could  supply  the  deficiency. 

One  of  the  acknowledged  evils  of  machinery  is  the 
exploitation  of  child  labor  which  usually  follows  its  in- 
troduction. Such  was  the  case  in  England  and  we  find 
it  repeated  again  in  the  new  industrial  districts  of  the 
South.  In  those  industries  where  the  repetition  of  a 
small  mechanical  process  enables  child  labor  to  be  em- 
ployed, the  temptation  is  to  take  advantage  of  the  oppor- 
tunity; for  children  have  no  rights  to  assert,  no  wage 
scale  to  uphold  nor  working  time  to  maintain.  In  that 
respect  they  are  on  a  par  with  slave  labor,  and  are  more 
adaptable  to  the  methods  of  modern  production.  It 
might  be  said  with  fairness  that  the  capitalists  utilizing 
such  opportunities  are  not  alone  to  blame,  for  short- 
sighted and  grasping  parents  often  drive  their  children 


INDUSTRIAL   CONCILIATION.  26$ 

into  the  mills  because  of  the  paltry  sum  which  might  be 
added  to  the  family  income,  and  in  time  they  get  into 
the  habit  of  depending  upon  the  pittance  obtained  at  so 
terrible  a  sacrifice. 

The  inducement  of  a  "plentiful  supply  of  cheap 
labor  "  is  also  held  out  to  capitalists  by  small  communi- 
ties as  a  means  of  persuading  them  to  invest  in  their 
neighborhoods.  These  considerations  are  the  chief 
barriers  to  be  overcome  in  abolishing  child  labor.  In 
course  of  time,  however,  as  the  consequences  become 
more  evident,  and  the  exultation  over  the  acquisition  of 
new  factories  wears  off,  the  public  conscience  revolts 
against  this  debasement  of  childhood  and  the  law  is  then 
evoked  to  protect  it.  The  strenuous  efforts  being  made 
in  the  South  on  the  part  of  the  labor  organizations  and 
sympathizers  to  enact  protective  laws  lead  us  to  hope 
that  we  shall  at  least  be  spared  the  dreadful  experience 
of  England  during  the  first  half-century  of  the  factory 
system. 

As  to  the  material  advantages  of  machinery,  it  surely 
has  enlarged  the  capacities  of  the  people  and  multiplied 
their  opportunities.  The  possibilities  are  such  as  to 
make  the  mind  tremble  in  anticipation.  It  is  the  agency 
which  alone  can  raise  wages,  reduce  the  working  time, 
and  enhance  the  buying  power  of  money — a  threefold 
gain.  There  is,  however,  notwithstanding  these  benefits, 
another  and  withal  a  more  important  side.  Has  it  ad- 
vanced the  worker  as  a  man  ?  Has  it  increased  his 
independence?  Has  it  improved  his  social  standing  ? 
These  are  the  questions  which  demand  an  answer,  and 
unless  it  can  be  given  emphatically  in  the  affirmative, 
then  the  prodigious  increase  in  wealth  production  has 
been  without  result. 


266  INDUSTRIAL   CONCILIATION. 

The  feeling  against  machinery  will  not  cease  until  the 
workman  profits  more  directly  as  a  producer;  until  he  is 
treated  as  a  human  being  and  not  as  a  mere  animated 
tool;  until  he  becomes  more  than  a  tender,  an  incident 
in  production.  The  human  element  must  become  more 
evident,  and  the  toiler  made  to  feel  his  partnership. 
Then  the  true  mission  of  machinery  will  be  revealed  to 
all  as  the  only  means  which  can  liberate  man  from 
drudgery,  increase  his  control  over  nature,  and  provide 
the  leisure  essential  to  a  higher  culture. 


APPENDIXES 


267 


APPENDIX  I. 

APPEAL  TO  THE  AMERICAN  PEOPLE 

Adopted  at  the  Conference  on  Conciliation  and  Arbitration,  held  under  the 

auspices  of  the  National  Civic  Federation,  Chicago, 

Illinois,  December  lyth  and  i8th,  1900. 

To  the  American  People,  Greeting  : 

THE  Conference  on  Conciliation  and  Arbitration,  held  under  the 
auspices  of  the  National  Civic  Federation,  animated  by  a  desire  of 
witnessing  some  practical  benefits  to  the  people  of  our  land  growing 
out  of  these  deliberations,  desires  in  a  spirit  of  fairness  to  make  a 
public  appeal  for  greater  sobriety  of  judgment  on  a  subject  of  the 
first  importance.  We  believe  that  the  present  time  is  peculiarly 
fitting,  standing  as  we  do  on  the  border  line  of  two  centuries,  to 
make  such  an  appeal,  and  we  believe  we  could  in  no  better  way  em- 
ploy the  last  days  of  a  dying  century  than  by  preparing  ourselves  for 
the  highest  duties  of  citizenship  in  the  new  century  upon  which  we 
are  so  soon  to  enter. 

While  addressing  ourselves,  for  apparent  reasons,  more  directly  to 
all  those  who  are  called  upon  to  mould  thought  and  to  shape  public 
opinion,  chief  among  which  agencies  are  the  pulpit  and  the  press, 
this  appeal  is,  however,  intended  for  every  American  citizen,  of 
whatever  station  in  life. 

The  secret  of  good  citizenship  we  believe  to  be  the  restraint  which 
the  individual  can  and  does  place  upon  many  of  his  own  natural  in- 
clinations, while  the  secret  of  success  in  life  is,  after  all,  dependent 
on  the  efforts  which  the  individual  makes  to  work  out  his  own 
salvation,  and  the  individual  citizen  is,  therefore,  specially  urged 
to  take  a  personal  interest  in  the  work  outlined  by  this  conference. 

We  duly  recognize  that  unless  labor  is  regularly  employed  and  has 
reason  to  be  satisfied  with  its  wages  and  conditions  in  life  we  cannot 

269 


2/0  INDUSTRIAL   CONCILIATION. 

have  permanent  peace  nor  substantial  prosperity.  We  also  recog- 
nize that  capital  must  find  adequate  returns  for  its  investment  if 
wages  are  to  be  fair  and  discontent  is  to  be  averted. 

To  the  end  that  tranquillity  in  the  industrial  world  may  prevail, 
this  Conference  on  Conciliation  and  Arbitration  would  make  the 
following  recommendations  to  the  American  people  : 

First_That  employers  and  wage-earners  should  enter  into  an- 
nual or  semi-annual  agreements  or  contracts. 

Second — That  all  industries  in  the  United  States  should  establish 
boards  of  conciliation  within  the  several  and  varied  interests,  to 
which  boards  of  conciliation  all  differences  and  disputes  arising  be- 
tween employer  and  employee,  if  not  readily  adjusted  between  the 
immediate  interests  concerned,  may  be  referred  for  settlement. 

Third — Recognizing  the  fact  that  compulsory  arbitration,  aside 
from  all  other  objections  urged  against  it,  is  not  at  this  time  a  ques- 
tion of  practical  industrial  reform,  and  inasmuch  as  the  systems  of 
arbitration  now  in  vogue  do  not  seem  fully  to  meet  the  requirements 
of  the  different  interests,  and  appreciating  the  importance  of  the 
subject, 

We,  therefore,  recommend  that  the  presiding  officer  of  this  con- 
ference appoint  a  committee  to  serve  for  a  period  of  one  year,  to  be 
composed  of  six  representatives  of  the  employer  class  and  six  repre- 
sentatives of  the  employee  class,  these  representatives  to  be  selected 
as  nearly  as  possible  from  the  different  sections  of  the  country,  for 
the  purpose  of  formulating  some  plan  of  action  looking  to  the  estab- 
lishment of  a  general  system  of  conciliation  that  will  promote  in- 
dustrial peace,  and  that  this  joint  committee  be  empowered  to  add 
to  its  number  and  fill  any  vacancies  that  may  occur. 

We  would  recommend  also,  that  this  joint  committee  be  given 
power  to  appoint  such  auxiliary  committees  from  the  industries, 
trades,  and  professions  as  may  seem  best  to  promote  the  work  of 
conciliation  and  education. 

We  believe  that  this  conference  will  have,  in  part  at  least,  failed 
of  its  mission  unless  it  strenuously  insists  that  the  proper  time  to 
arbitrate  is  not  after  a  strike  or  lockout  has  been  inaugurated,  but 
before  it  has  begun.  We  fully  realize  that  all  plans  of  arbitration 
and  conciliation  will  be  unavailing  unless  we  are  all  animated  by  a 
spirit  of  fairness  and  justice  and  are  willing  to  open  our  eyes  to  such 
rights  as  belong  to  every  citizen. 


A  PPENDIXES  271 

In  accordance  with  the  above  recommendations  the  presiding 
officer  appointed  the  following  named  gentlemen  to  constitute  the 
committee : 

A.  C.  BARTLETT,  Vice-President  Hibbard,  Spencer,  Bartlett  & 
Co.,  wholesale  hardware;  SAMUEL  GOMPERS,  President  American 
Federation  of  Labor ;  HENRY  W.  HOYT,  President  National 
Founders'  Association  ;  JOHN  MITCHELL,  President  United  Mine 
Workers  of  America  ;  HERMAN  JUSTI,  Commissioner  Illinois  Coal 
Operators'  Association  ;  MARTIN  Fox,  President  Iron  Moulders' 
Union  of  America  ;  E.  D.  KENNA,  Vice-President  Atchison, 
Topeka  &  Santa  Fe  Ry.  System  ;  FRANK  P.  SARGENT,  Grand 
Master  Brotherhood  of  Locomotive  Firemen  ;  G.  WATSON  FRENCH, 
Vice-President  Republic  Iron  and  Steel  Company  ;  HENRY 
WHITE,  General  Secretary  United  Garment  Workers  of  America ; 
CHAUNCEY  H.  CASTLE,  President  Stove  Founders'  National  Defence 
Association ;  JAMES  M.  LYNCH,  President  International  Typo- 
graphical Union. 

APPENDIX  II 

ADDRESS    OF    NATIONAL    COMMITTEE    ON    CONCILIATION    AND 
ARBITRATION,    ISSUED    MAY    8,    IQOI,    AT   NEW   YORK 

PURPOSE 

The  National  Committee  on  Conciliation  and  Arbitration,  created 
at  a  convention  held  in  the  city  of  Chicago,  in  December,  1900, 
under  the  auspices  of  the  National  Civic  Federation,  and  clothed 
with  authority  by  that  convention  to  organize  and  formulate  policies 
and  measures  and  to  enter  into  active  service  in  the  cause  of  peace  and 
harmony  in  the  industrial  world,  realizing  that  the  prosperity  of  our 
nation  depends  upon  the  steady  and  profitable  employment  of  the 
people,  that  when  the  workers  are  idle  capital  is  idle,  and  the  in- 
terest of  employer  and  employee  are  imperilled,  hereby  announces 
and  declares  its  purpose  to  be  the  prevention  of  those  most 
threatening  of  all  industrial  disturbances,  the  strike  and  the  lockout. 

SCOPE 

The  scope  or  field  of  work  of  the  National  Committee  on  Concili- 
ation and  Arbitration  is  briefly  described  as  follows  : 


INDUSTRIAL   CONCILIATION. 

Fjrst — To  form  in  the  public  mind  the  conviction  that  industrial 
disturbances  in  the  nature  of  strikes  or  lockouts  can  and  should  be 
avoided. 

Second — That  the  only  reliable  method  of  avoiding  such  dis- 
turbances is  through  full  and  frank  conferences  between  employers 
and  workmen,  with  the  avowed  purpose  of  reaching  an  agreement 
as  to  terms  of  employment.  Trade  agreements  between  employers 
and  workmen  where  established  for  a  definite  term  have  so  fully 
demonstrated  their  value  in  maintaining  industrial  peace  that  they 
should  be  generally  adopted. 

Third — That  under  conditions  existing  to-day,  and  as  they  are 
likely  to  exist  for  the  future,  organizations  suitable  for  comprehen- 
sive and  conclusive  consideration  of  those  complex  questions  in- 
volved in  the  mutual  relations  of  employers  and  workmen,  are  most 
valuable  and  important,  and  where  possible  should  be  utilized,  but 
in  any  event  the  true  and  safe  policy  is  comprehended  in  conference 
and  agreement  between  employers  and  workmen  covering  as  large  a 
constituency  as  possible,  and 

Fourth — That  the  surest  way  to  keep  organizations  of  employers 
and  workmen  free  from  unwise  and  injurious  action  is  through  co- 
operation and  the  mutual  education  and  respect  which  will  inevi- 
tably follow  from  it. 

To  establish  and  maintain  a  board  or  commission  composed  of  the 
most  competent  persons  available,  selected  from  employers  and  em- 
ployees of  judgment,  experience,  and  reliability,  which  shall  be 
charged  with  the  above-described  duties,  and  shall  also  be  expected 
to  make  known  to  workmen  and  employers  that  their  counsel  and 
aid  will  be  available  if  desired  in  securing  that  co-operation,  mutual 
understanding,  and  agreement  already  indicated  as  the  general  pur- 
pose of  this  National  Committee  on  Conciliation  and  Arbitration. 

METHOD 

The  general  method  of  operation  only  may  be  outlined  ;  specific 
measures  will  have  to  be  determined  from  time  to  time,  as  study,  in- 
vestigation, and  experience  may  show  cause. 

The  committee  will  secure  the  fullest  possible  information  as  to 
methods  and  measures  of  arbitration  in  vogue  throughout  the  world  ; 
it  will  put  itself  into  communication  with  all  representative  bodies 
of  workmen  and  employers,  inform  them  as  to  its  purpose,  offer  its 


APPENDIXES  273 

services  and  secure  their  co-operation  and  good  will  if  possible,  asking 
particularly  of  general  organizations  that  whenever  any  specific 
questions  arise  where  there  is  no  established  method  of  joint  con- 
sideration and  settlement  existing,  that  the  national  committee 
be  informed,  in  order  that  it  may  use  its  influence  before  trouble  oc- 
curs. This  method  to  be  extended  to  local  organizations  when  the 
committee  may  find  itself  sufficiently  equipped  to  do  so. 

The  committee  will  adopt  such  measures  as  may  seem  feasible  to 
disseminate  through  the  general  newspaper  press,  through  maga- 
zines, periodicals,  and  special  pamphlets,  the  results  of  its  investi- 
gations, together  with  its  recommendations  and  suggestions. 


INDEX. 


Address,  National  Committee  on 
Conciliation  and  Arbitration, 
271,  273 

Adler,  Felix,  Member  New  York 
Board  of  Mediation  and  Con- 
ciliation, 7 

Amalgamated  Society  of  En- 
gineers, Great  Britain,  112, 
114 

American  Federation  of  Labor, 
72,  197,  258 

Appeal  to  the  American  people, 
269,  271 

Arbitration  : 
Committees,  47 
Definition  of,  41,  43,  107,  141, 

142 

In  Europe,  99,  140 
In  minor  matters,  152 
Not  desirable,  180,  207 
And  political  action,  213,  216 

Bagley,  Frederick  P.,  on  or- 
ganization of  employers,  192- 
203 

Bell,  Sir  James,  arbitrator,  Scot- 
land, 121 

Board  of  Trade,  Great  Britain, 
104 

Boards  of  Arbitration,  140 

Boiler  Makers  and  Iron  and  Steel 
Shipbuilders'  Society,  Great 
Britain,  120,  121 

Book  trade,  France,  134 

Boot  and  Shoe  Workers'  Union, 
63-67,  148,  149 ;  Leicester, 
England,  118-120 


Brassworkers,        Amalgamated, 

Great  Britain,  128 
Bricklayers  and  masons'  arbitra- 
tion, 145 
Bricklayers'  Association  of  New 

York,  27-29 
Buchanan,  Frank,  on  arbitration 

and  political  action,  213-216 
Builders,    National    Association 

of,  147,  148 
Building  trades  and  machinery, 

259,  260 
Building     Trades     Council     of 

Chicago,  198-214 
Building    trades,    Wolverhamp- 

ton,  no,  in 

Canadian  Pacific  Railway,  55 
Capital   and  labor,  antagonism, 

94-97 

Castle,  Chauncey  H.,  concilia- 
tion, not  arbitration,  176-187 

Chambers,  Jas.  A.,  President 
American  Glass  Company,  84 

Chevalier,  M.,  conciliation  in 
France,  102 

Chicago  Conference  on  Concilia- 
tion and  Arbitration,  89-253 

Child  labor,  264 

Cigarmakers,  attitude  toward 
machinery,  258 

Clark,  E.  E.,  agreements  of 
railway  conductors,  217-222 

Clothiers'  Association,  National, 

37 
Coal    Miners'    Association,    n, 


275 


276 


INDEX. 


Coal  Miners'  Association — Cont. 

France,  135-13? 

Germany,  130 

Northumberland,  118 

Sliding  scale,  153 
Cohn,   Morris   M.,  on  the  legal 

phase  of  arbitration,  244-253 
Collective  bargaining,  42,  43,  45, 

46,  150 
Compulsory  arbitration,  92,  163- 

166,  215,  220,  222 
Compulsory  investigation,  224 
Conciliation  : 

Definition    of,   42,    107,    142, 
207 

And   arbitration    abroad,    99, 

140 

Conductors,  railway,  trade  agree- 
ments, 149,  217-222 
Conferences,  general,  153 
Conseils  des  Prudyhommes,   101, 

102,  106,  131 

Cotton  trade,  Great  Britain,  123 
Cribben,  Henry,  President  Stove 

Founders'    National    Defence 

Association,  178 

Denmark,  trade  agreements,  132- 

133 

Dock  laborers,  London,  arbitra- 
tion, 126 

Donnelly,  John  J.,  President 
New  York  Bricklayers'  Asso- 
ciation, address,  27-29 

"Driving,"  injurious  to  the 
workers,  262 

Duncan,  Jas.,  First  Vice-Presi- 
dent  American  Federation  of 
Labor,  address,  80-82 

Durand,  E.  Dana  : 
Address,  40-48 
Arbitration     in     the     United 
States,  141-154 

Dyeing  trades,  arbitration,  124, 
125 

Easley,  R.  M.,  Secretary  Na- 
tional Civic  Federation,  85,  92 


Eaton,  Horace  M.,  General  Sec 
retary  Boot  and  Shoe  Workers' 
Union,  address,  63-67 
Eight-hour  work-day,  261 
Employers'    Federation   of    En- 
gineering  Associations,  Great 
Britain,  112-114 

Farmers'  view  of  arbitration, 
238-243 

Firemen,  Brotherhood  of  Loco- 
motive, trade  agreements,  48- 
58 

Founders'  Association,  National, 
18,  155-175 

Fox,  Martin,  on  Iron  Moulders' 
and  Founders'  agreements, 

155-167 
France  : 

Conciliation   and    arbitration, 

101,   102 

Conseils  des  Prud'hommes,  133 

Germany,  arbitration,  130 

Glass  trade,  151 

Gompers,      Samuel,      President 

American  Federation  of  Labor, 

address,  67-72 
Great  Britain : 

Trade  unions,  33 

Conciliation   and    arbitration, 
103-130 

Hanna,  Marcus  A.,  address,  n- 

13 

Hatters  of  North  America, 
United,  24-27 

Hosiery  and  Glove  Trade,  Great 
Britain,  108-110 

Hoyt,  H.  W.,  on  Iron  Moulders' 
and  Founders'  trade  agree- 
ments, 168-175 

Indiana  Labor  Law,  223-226 

Industrial  Commission,  United 
States,  40,  141 

Ireland,  Archbishop  John,  ad- 
dress, 14-18  ;  85-87 

Iron  mining,  Great  Britain,  120 


INDEX. 


277 


Iron    moulders,    21,    150,    151, 

155-187 
Iron  and  steel  trades,  150,  153 

Great  Britain,  in,  114 

Scotland,  121 
Italy,  arbitration,  133 

James,  Lord,  arbitrator,  116 
Joint  committees,  59,  152 
Justi,  Herman,  on  organization 
of  employers,  204-212 

Keefe,  Daniel  J.,  on  agreements 
of  the  Longshoremen  and  Dock 
Managers,  188-191 

Kettle,  Rupert,  conciliation  in 
England,  103,  123 

Lace   trade,    Nottingham,    121- 

123 
Laundries     and     bleach-houses, 

France,  134 
Legal  phase  of  arbitration,  244- 

253 

London  Labor  Conciliation  and 
Arbitration  Board,  126 

'Longshoremen  and  dock  mana- 
gers, trade  agreements,  188- 
191 

Machinery,  attitude  of  labor 
unions,  254-266 

MacVeagh,  Franklin,  opening 
address,  Chicago  Conference, 
91-98 

Marks,  Marcus  M.,  President 
National  Clothiers'  Associa- 
tion, address,  37-39 

Mason  Builders'  Association, 
New  York,  148 

Massachusetts  State  Board  of 
Mediation  and  Arbitration, 
227-237 

Masters  and  Workmen  Arbitra- 
tion Act,  Great  Britain,  104 

Metal  Trades  Association,  18, 151 

Mine  Workers,  United,  78 

Miners'  Federation  of  Great 
Britain,  114-116,  129 


Minor  disputes,  152,  153 
Mitchell,  John,  President  United 
Mine    Workers'    Union,    ad- 
dress, 78-80 

Mundella,  A.  J.,  pioneer  in  con- 
ciliation and  arbitration,  Great 
Britain,  106,  109,  123 

National  Civic  Federation,  158 

New  York  Conference  on  Con- 
ciliation and  Arbitration,  1-88 

New  Zealand,  compulsory  arbi- 
tration, 92 

Nixon,  Lewis,  address,  59-63 

Organization,  of  employers,  192- 
212;  of  employers  and  em- 
ployees, 44,  70,  218 
National,  93,  143 

Overproduction,  260 

Pfahler,  Wm.  H.,  address,  19-22 

Phillips,  John,  Secretary  Na- 
tional Hatters'  Union,  address, 
24-27 

Potter,  Bishop  Henry  C.,  ad- 
dress, 8-1 1 

Pottery  trades,  151 
Great  Britain,  106 

Public,  The  Innocent,  238-243 

Reed,  W.  O.,  on  Massachusetts 

State  Board,  227-237 
Representation  of  employers  and 

employees,  45 
Restrictions  by  trade-unions,  33, 

61,  199,  201,  215,  254-266 
Reynolds,    Jas.    B.,    University 

Settlement,  address,  35-37 
Rosebery,  Lord,  arbitrator,  coal 

miners'  strike,  115 
"  Rushing,"    injurious     to     the 

worker,  262 
Ryan,     James,      Vice-President 

New  York  State  Federation  of 

Labor,  address,  29-32 

Sargent,  Frank  P.,  Grand  Mas- 
ter Brotherhood  of  Locomo- 
tive Firemen,  address,  48-58 


278 


INDEX. 


Say  ward,  W.  H.,  Secretary  Na- 
tional Association  of  Builders, 
147,  148 

Schwab,  Charles  M.,  President 
United  States  Steel  Corpora- 
tion, address,  32-34 

Sliding  scale,  153 

Stahl,  John  M.,  The  Innocent 
Public,  238-243 

State  Boards  of  Arbitration,  167, 

215 

Stove  Founders'  National  De- 
fence Association,  150,  153, 
157,  176-187,  203,  241 

Straus,  Hon.  Oscar  S.,  opening 
address,  3-7 

Strikes,  attitude  of  trade-unions, 
143,  144 

Switzerland,  arbitration,  130,  131 

Taylor,     Hon.    R.    S.,    Indiana 

Labor  Law,  223-226 
Tillett,  Ben,  labor  delegate  from 

Great  Britain,  address,  73-78 
Trade  agreements,  145,  150,  164 

Iron   Moulders'    Union,    160, 
161 


Legal  enforcement  of,  71 
Trade-unions,  criticism  of,  60 
Attitude  toward  strikes,  143 
Tuley,  Judge  Hurry  F.,  arbitra- 
tor, 215 

Typographers,  Marseilles,  134 
Typographical    Union,    attitude 
toward  machinery,  259 

Voluntary  arbitration,  163 
Voluntary  conciliation  and  arbi- 
tration, advantages  of,  137 

Waldeck-Rousseau,  Prime  Min- 
ister of  France,  arbitrator,  135 

Weavers,  Great  Britain,  123 

White,  Henry,  The  Attitude  of 
Labor  Unions  Toward  Ma- 
chinery and  Restrictions  on 
Output,  254-266 

Wright,     Carroll    D.,    Commis- 
sioner of  Labor,  59 
Trade  Boards  of   Conciliation 
and  Arbitration  abroad,  99 
140 


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QUESTIONS  OF   in^  ~._ 


Alexander,  E.  P., -No.  36 
Atkinson,  E.,  No.  40 
Bagehot,  W.,  No.  28 
Baker,  C.  W.,  No.  59 
Blair,  L.  H.,  No.  35 
Bourne,  E.  G.,  No.  24 
Codman,  J.,  No.  64 
Cowles,  J.  L.,  No.  89 
Crookes,  W.,  No.  94 
Dos  Passos,    J.  R., 
Dugdale,  R.  L.,  N< 
Ehrich,  L.  R., 
Elliott,  J.  R./    J  0030V 


Hall,  B.,  No.  71 
Hendrick,  P.,  No.  96 
Hitchcock,  H.,  No.  37 


Jacobi,  M.  P.,  No.  80 
Jones,  W.  H.,  No.  39 
Jugla*-    C.,  No.  75 
I./    /  G.  W.,  No.  25 


/  y 


J.  S.,  No.  76 


.  J.,  No.  66 
John   P.,   No.   98. 
D.  S.,  No.  77 
J.  E.  T.,  No.  23 
.of,  J.,  Nos.  9,  30,  73,  86 

in»  Thos-  G-»  No-  71 
,  Hon.  P.,  No.  65 

.r,  E.  J.,  No.  63 
>ices,  A.  P.,  No.  79 
•Storey,  MM  No.  58 
Swan,  C.  H.,  No.  91 
Taussig,  F.  W.,  Nos.  47,  74 
Tourgee,  A.  W.,  No.  88 
Tyler,  L.  G.,  No.  68 
Wells,  D.  A.,  Nos.  54,  64,  7-1 
Wheeler,  E.  P.,  No.  84 


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